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Crypto group DCG seeks new partners for portfolio firms amid SVB collapse - CoinDesk

Published 03/14/2023, 04:02 AM
Updated 03/14/2023, 08:11 PM
© Reuters. A police officer controls an access to a branch of Silicon Valley Bank in Wellesley, Massachusetts, U.S., March 13, 2023.     REUTERS/Brian Snyder
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(Reuters) - Crypto conglomerate Digital Currency Group (DCG) is looking to find new banking partners for portfolio companies following the collapse of Silicon Valley Bank, Signature Bank (NASDAQ:SBNY) and Silvergate, CoinDesk reported on Tuesday, citing messages viewed by the outlet.

Santander (BME:SAN), HSBC and Deutsche Bank (ETR:DBKGn) are still willing to connect with crypto firms, CoinDesk said, after recent banking failures in the United States left crypto firms and tech startups stranded and hunting for new banking partners.

DCG has also reached out to BlackRock (NYSE:BLK), JPMorgan (NYSE:JPM) and Bank of America (NYSE:BAC), the report added. DCG is the parent company of CoinDesk.

The companies did not immediately respond to Reuters requests for comment on the report.

Banks may restrict some services for crypto firms, such as brokerage and money market services and the ability to wire money to third parties, according to the messages seen by CoinDesk.

Traditional banks may set up banking accounts for crypto firms, but would place restrictions based on the level of crypto exposure, the report added.

© Reuters. A police officer controls an access to a branch of Silicon Valley Bank in Wellesley, Massachusetts, U.S., March 13, 2023.     REUTERS/Brian Snyder

The collapse of Silicon Valley Bank last week has sent shockwaves across the banking sector, with U.S. regional banks facing increasing pressure and industry executives and advisers saying they could be forced to seek saviors if a rout in their stocks doesn't let up.

(This story has been corrected to say that DCG is on a lookout for banking partners for its portfolio firms, not for the group, in the headline)

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