Swiss Banks See Massive Influx on Inquiries from Crypto Firms

Two of the biggest crypto-friendly banks were shut down earlier this month in the US – Silvergate Capital and Signature Bank. As the US regulators tighten their grip on banking institutions, crypto firms have been looking for banking partners elsewhere.

As per the latest CNBC report, most of these crypto firms have turned to crypto-friendly Swiss banks while flooding them with requests for banking services. Although digital assets have shown strength amid the banking crisis, the fact remains that crypto firms still need banking partners as a source of liquidity.

Now that the two biggest lenders for the crypto space – Silvergate and Signature Bank – are out of business, crypto firms are finding hope in Swiss banks. Over the last few years, Switzerland has positioned itself as a crypto hub with clear regulatory measures in place.

An unnamed advisor at a private Swiss bank told CNBC: “We have been inundated with requests”. He further added that since the collapse of Silvergate and Signature, there’s been a flood of requests at the private bank. “It is just nuts,” the advisor said.

Interestingly, the inquiries continue to flow despite the recent turmoil at Swiss banks such as Credit Suisse. While this episode pushed Swizerland’s financial situation to the edge, it hasn’t deterred crypto companies from looking for potential banking partners.

US Crypto Firms Moving to Swiss Banks

Sygnum which is one of the largest Swiss banks focused on serving crypto companies has seen a strong influx of inquiries. They have already secured a Swiss banking license along with a capital market license to operate in Singapore. Dominic Castley, chief marketing officer at Sygnum said:

“Over the past weeks as the current banking industry events have unfolded, we have seen a significant increase in onboarding enquiries from various international locations”. Interest is “mainly coming from investors, asset managers and blockchain projects looking to diversify their crypto investments with a trusted Swiss partner like Sygnum Bank.”

One of the major reasons behind crypto firms seeking banking partners in Switzerland is clear regulations. Since Switzerland offers a stable operating environment, it becomes an ideal choice for the crypto players to operate here. Thierry Arys Ruiz, CEO of Swiss-based blockchain firm AgAu.io said that the country is indeed more “stable” and there is “more certainty to what the rules are.”

In the Zug region, Switzerland has created a few local hubs dubbed “Crypto Valley”. As more and more crypto players move to Switzerland, will the US lose its stronghold in the crypto space?

Several US lawmakers and regulators blamed crypto for the recent fall of three major banks in the country. Ark Invests’ Cathie Wood said:

“In our view crypto is a solution to the central points of failure, the opacity, and the regulatory mistakes in the traditional financial system. Made the scapegoat for policy mistakes, crypto will move offshore, depriving the US of one of the most important innovations in history”

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Source: https://coingape.com/crypto-firms-turn-to-swiss-banks-after-silvergate-and-signature-fall/