Analysis Demonstrates Binance.US Struggles to Identify Bank Partner


  • The recent failures of Silvergate and Signature Bank left Binance.US without banking services.
  • Binance.US is looking for a new bank partner to serve as a fiat on-ramp and off-ramp for its clients in the US.
  • A WSJ report has however indicated that the exchange is facing challenges in identifying the bank partner.

Binance.US, the US division of the global crypto exchange Binance, is in the process of finding a new bank partner that will serve as a fiat on-ramp and off-ramp. The crypto exchange was left without a banking partner after the collapse of Silvergate and Signature Bank.

Nevertheless, a report published by the WSJ on April 8 has revealed that Binance.US is encountering issues in identifying a new banking partner. As per the report, the exchange has been relying on middleman banks to store funds.

Currently, Binance.US is holding customer funds through the financial technology firm Prime Trust’s banking partners.

Regulatory clampdown on banks with crypto clients

Binance.US has made a number of attempts to establish a direct banking relationship with the likes of Cross River Bank and Customers Bancorp, but they have all come to nothing.

The regulatory clampdown in the US on banks with cryptocurrency customers is thought to be a significant factor contributing to the troubles the exchange is facing in locating a new banking partner.

Binance has been the target of the US Commodity Futures Trading Commission (CFTC) investigation since 2021. The CFTC sued Binance Holdings and its CEO, Changpeng “CZ” Zhao, last month for supposed trading violations. And although CZ issued a statement refuting CFTC’s allegations, the lawsuit has had a significant effect on the exchange including leading to a drop in the exchange’s crypto market share.

The lack of a direct bank has drastically affected Binance.US customers, especially after Binance said that some US dollar deposit services would be temporarily affected as it transitions to new banking and payment service providers over the next few weeks.

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