Customers Bank Restricts Banking Services For Some Crypto Hedge Funds
CryptoNewsTerminal Staff07 Jun, 2024
Customers Bank Restricts Banking Services For Some Crypto Hedge Funds
Customers Bank, a Pennsylvania-based bank that serves major crypto firms like Coinbase, Circle, and Galaxy Digital, has informed several crypto hedge funds that it will no longer provide banking services to them. This move comes as part of an effort by the bank to reduce its exposure to the cryptocurrency industry. According to sources familiar with the matter, the bank's decision is not specifically targeted at crypto companies, but rather part of a broader effort to clean up inactive accounts. The sources added that the crypto firms being notified have been searching for new banking partners for several weeks. Customers Bank has also restricted deposits from crypto clients to a 15% exposure cap. This move is intended to further reduce the bank's risk exposure to the cryptocurrency market. The decision by Customers Bank is the latest in a series of moves by financial institutions to distance themselves from the cryptocurrency industry. In recent months, several other banks have restricted or terminated services to crypto companies, citing concerns about volatility, regulatory uncertainty, and fraud.
