Customers Bank Emerges as Top Choice for Crypto Businesses
Customers Bank, a Pennsylvania-based bank, has become a leading choice for crypto businesses seeking a banking partner. This comes after the collapse of two other crypto-friendly lenders, Silvergate Capital Corp. and Signature Bank. Customers Bank has gained attention for its partnerships with digital asset firms and its payments platform, Customers Bank Instant Token (CBIT), which enables crypto clients to move dollars with the same immediacy as the digital asset industry.
Key Points:
– Customers Bank has become a top choice for crypto businesses following the collapse of Silvergate Capital Corp. and Signature Bank.
– Customers Bank holds CBIT deposits in US currency, ensuring quick access to funds for clients.
– The bank offers insured cash sweep, which helps depositors maximize their FDIC coverage.
– CEO Sam Sidhu has limited deposits on the CBIT platform to no more than 15% of the bank’s total.
– Customers Bank aims to expand its payments business and develop deeper customer relationships with other industries.
Hot Take:
Customers Bank’s success in the crypto industry offers hope for the future of crypto banking. As the industry continues to grow, more small banks may follow suit in partnering with digital asset businesses and providing necessary services to support their growth. However, there is still a need for more alternatives and fiat banks that support crypto players. Additionally, Customers Bank’s position as a top choice for crypto businesses may attract attention from regulators, who are increasingly concerned about the risks of doing business with the industry.