Crypto companies look to big banks like JPMorgan and they are accepted

After the bankruptcy of the three banks most involved in cryptocurrencies, companies in the sector are now looking to big banks to handle their money. The big surprise is that they are well received, even by JPMorgan.

The demand for banks deemed “too big to fail” echoes Jeremy Allaire’s statements. This week, Circle’s CEO claimed he was “trying to save cryptocurrencies from the banks” after his stablecoin locked up $3.3 billion in Silicon Valley Bank (SVB).

While the SVB was bailed out by the Fed, which guaranteed its clients’ deposits, no other crypto company wants to experience the same or even worse situation.

This also explains the crisis at small American banks. After all, many believe that the Fed is splitting the banking system in two, those that qualify for bailouts and those that don’t. In other words, many are seeking access to the first group.

JPMorgan opens accounts for cryptocurrency companies

Jamie Dimon, CEO of JPMorgan, is known as one of the strongest critics of cryptocurrencies. However, his bank seems open to opening accounts for companies in this sector after they lost their largest banking partners.

Citing anonymous sources, a New York Magazine story points out that JPMorgan works with both web3-focused startups and venture capital funds involved in cryptocurrencies.

A spokesperson for one of these funds also confirmed to NYMag that the doors of these banks are currently open.

“We mention many banks that are considered ‘too big to fail’. I can’t say anyone said no to us.”

But the situation was also different before the outbreak of the banking crisis. On several occasions, the US central bank has asked banks to be careful with cryptocurrency companies, especially after the collapse of the FTX.

“They are all more open to accepting us”Yossi Hasson, co-founder of an NFT project, revealed to NYMag about major banks. “Before, you just couldn’t get through compliance, and now, magically, you can.”

FDIC denies that Signature’s new owners should cut ties with cryptocurrencies

Of the three closed US banks, Signature was the most controversial case. While some reputable names in the industry claim the closure was arbitrary, Reuters sources claimed the new owners should abandon customers involved in cryptocurrencies.

While it did not immediately respond to the article, the FDIC took a position after publication, denying that such a term exists and that the agency has no plans to ban any specific activity from the bank.