Swiss Banks Inundated With Requests From Crypto Firms
Crypto firms are looking for new institutions to bank with after the collapse of two crypto-friendly lenders, Signature Bank and Silvergate Capital. This has led to an influx of requests from crypto companies to Swiss banks, which are considered to be more welcoming to the crypto industry due to their solid regulation.
Following the collapse of Signature Bank and Silvergate Bank, some companies have turned to crypto-friendly Swiss banks, according to CNBC. Sygnum, one of Switzerland's largest banks, said demand from U.S. crypto firms was pouring in. https://t.co/T9PCAQP2GB
— Wu Blockchain (@WuBlockchain) March 22, 2023
Inflow of US Customers
According to industry insiders who spoke to CNBC, Swiss banks have been flooded with requests for banking services from crypto firms. An advisor at a private Swiss bank stated that the bank received more requests in a single day than ever before, following the winddown of Signature Bank and Silvergate this month. Another anonymous advisor to financial technology companies also confirmed that there has been “a lot more inflow from U.S. customers” to Swiss banks.
Sygnum, one of Switzerland’s biggest banks focused on servicing digital asset companies, has also reported an influx of enquiries. The bank has a Swiss banking license and a capital markets services license in Singapore, making it an attractive option for companies looking for a trusted partner in the crypto industry.
Swiss Safe Haven
Switzerland has marketed itself as a crypto hub with solid regulation, creating what locals call “Crypto Valley” in the region of Zug. The government introduced a regulation on companies using blockchain technology in 2021, which has been welcomed by the crypto industry. Thierry Arys Ruiz, CEO of Swiss-based blockchain firm AgAu.io, stated that Switzerland is “more stable” and has “more certainty to what the rules are” compared to other countries.
While the recent turmoil in the Swiss banking sector, with Credit Suisse teetering on the brink and eventually being acquired by UBS, has put Switzerland’s reputation as a stable financial hub on the line, it has not deterred crypto companies from seeking out Swiss banks. The anonymous advisor at the private Swiss bank stated that the “problem is still there” in terms of crypto firms needing banking services.
Swiss banks have become an increasingly attractive option for crypto firms looking for stable banking services. The country’s solid regulation and established reputation as a financial hub make it an appealing choice for companies in the crypto industry.
