Binance.US Struggles to Find Banking Partner After Signature Bank Failure

Binance, one of the largest cryptocurrency exchanges in the world, is struggling to find a bank to take its customers’ cash for its US arm. According to a recent report by Bloomberg, the exchange has been rejected by at least one major financial institution due to concerns over its regulatory compliance and reputation. This has caused a significant setback for Binance.US, which launched last year with the aim of expanding its services in the American market. In this article, we dive deeper into the challenges faced by Binance in the US and the potential implications for the wider cryptocurrency industry.


According to sources, Binance’s US branch is currently facing difficulties in finding a bank to handle customer deposits after both Signature Bank and Silvergate Capital, previously used by the exchange, failed. Binance.US is now using a third party to hold funds and banks such as Cross River Bank and Customers Bancorp have yet to partner with the company due to regulatory concerns. Despite attempts to create new partnerships, no progress has been made. Binance.US’s spokesperson stated that the company is focusing on upgrading internal systems to stabilize the fiat platform and offer more services. Investors reportedly withdrew $1.6 billion from Binance after the US Commodity Futures Trading Commission filed a lawsuit alleging that the exchange was operating illegally with a non-compliant program.


In conclusion, Binance US is currently facing a major challenge in finding a bank that is willing to take in its customers’ cash. While the company has stated that it remains committed to complying with all relevant laws and regulations, this development has certainly slowed its growth trajectory in the US market. However, given the company’s reputation for innovation and adaptability, it is likely that Binance US will continue to search for alternative solutions and ways to navigate the regulatory landscape. In the meantime, investors and traders will need to stay tuned for updates on this ongoing story.