All articles tagged with #banking services
PNC Bank is partnering with Coinbase to offer cryptocurrency trading and related banking services to its customers, marking a significant move towards mainstream integration of digital assets in traditional finance.
Citigroup is rolling back its 2018 policy restricting banking services to firearm retailers, citing recent regulatory changes and political pressures, and will update its policies to clarify it does not discriminate based on political affiliation.
Custodia's lawsuit against the Federal Reserve Bank of Kansas City over the denial of a master account can proceed, according to a U.S. district court ruling. The court rejected the Fed's motion to dismiss the case but also denied Custodia's request for a master account and membership with the Fed. The court said Custodia had a plausible claim for relief against the Fed, but relief under the Mandamus Act was not available. The court also said Custodia's claim that the Fed Board of Governors had weighed in on the decision was plausible.
Nineteen Republican state attorneys general have accused JPMorgan Chase of religious discrimination and denying banking services to customers based on political or religious affiliations. This comes after 14 Republican state treasurers made similar accusations in March.
UK banks are "actively unbanking people, not just companies" over their decision to buy "crypto assets that are perfectly legal," according to Circle's European policy lead. While there is no evidence of a UK bank shuttering a customer's account altogether on account of crypto usage, there are several recorded instances of users facing temporary freezes on their accounts when trying to buy crypto. Banks have publicly detailed their policies, which include limits on how much can be transferred at once, and even blanket bans on transfers into crypto.
Crypto companies are facing difficulties accessing banking services in the United Kingdom, with many banks rejecting applications, freezing accounts, and requesting more documentation. This goes against Prime Minister Rishi Sunak's plans to make the UK a global crypto hub. The situation is worse in the UK than in the EU, where efforts to establish a framework for digital assets are making banks more receptive to crypto firms. Venture capital investment in digital asset companies in the UK has reportedly dropped 94% to $55 million in 2023. Crypto companies are turning to payment service providers to maintain business operations in the UK.
Digital currency firms are seeking banking services after the collapse of Signature Bank and Silvergate Capital, two lenders that were friendly to the industry. Some of these companies have turned to crypto-friendly Swiss banks, flooding them with requests for banking services. Switzerland has marketed itself as a crypto hub with solid regulation, and its welcoming stance towards cryptocurrency firms has made it an attractive location for companies seeking a stable operating environment. Swiss banks such as Sygnum and SEBA are seeing an influx of enquiries from international locations, mainly from investors, asset managers, and blockchain projects looking to diversify their crypto investments with a trusted Swiss partner.
The recent shutdowns of Signature and Silvergate banks have left the crypto industry with unanswered questions about the reasons behind the shutdowns. Companies want certainty that they will be able to tap banking services, but banks need to be comfortable serving crypto companies. The industry needs to know what factors led to Signature becoming a failed bank. The FDIC announced that Flagstar Bank would acquire the assets of Signature Bank, except for about $4 billion in crypto-related deposits. Major banks aren’t rushing to fill the Signature/Silvergate-shaped hole for crypto companies.
Silicon Valley Bank's strategy of offering banking services to startups and venture-capital firms, often encouraging their portfolio companies to do the same, powered spectacular growth for decades. However, the collapse of the bank left the sector extraordinarily vulnerable. SVB used financial sweeteners and strategic networking to attract both venture capitalists and their nascent tech companies, offering loans and credit to startups that often weren't profitable and would otherwise have a hard time getting a line of credit or a loan from a larger bank.
Southeast Asia's venture capital firms could face a bigger impact from the collapse of Silicon Valley Bank as finding a replacement for the U.S.-based bank in the region will be challenging. Local banks in the region do not provide the same product and services that SVB provides. However, startups in Southeast Asia are unlikely to be hit by the contagion from the collapse of Silicon Valley Bank as most did not bank with the U.S.-based bank.
HSBC has acquired Silicon Valley Bank's UK subsidiary for just over $1 under a deal facilitated by the British government and the Bank of England. The acquisition will protect the UK's tech sector, which is particularly reliant on the bank for financing. The deal excludes all assets and liabilities of the parent company, SVB. HSBC's UK subsidiary will finance the acquisition, and customer deposits will be protected with no taxpayer support.