US banks, already hesitant to work with crypto customers, are now even warier of providing services to the industry after a string of regional-lender collapses and amid heightened scrutiny by regulators.
Cross River Bank, for example, received requests from more than 100 new clients — not all of whom were crypto companies — seeking a safe harbor for their deposits within days of SVB Financial Group’s Silicon Valley Bank and Signature collapsing, according to a person with direct knowledge of the bank’s business. The closely held company turned down almost all those requests, the person said.
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