{"id":46193,"date":"2023-03-03T07:51:28","date_gmt":"2023-03-03T11:51:28","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=46193"},"modified":"2023-03-03T07:51:30","modified_gmt":"2023-03-03T11:51:30","slug":"crypto-hedge-fund-dacm-searches-for-new-banking-partners","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/crypto-hedge-fund-dacm-searches-for-new-banking-partners\/","title":{"rendered":"Crypto hedge fund DACM searches for new banking partners"},"content":{"rendered":"\n

After fintech bank Silvergate lost five cryptocurrency partners on March second, crypto hedge fund <\/a>Digital Asset Capital Management (DACM is searching for new banking partners in Switzerland.<\/p>\n\n\n\n

\"Crypto
Crypto hedge fund DACM searches for new banking partners<\/figcaption><\/figure>\n\n\n\n

Most well-known cryptocurrency companies, including Coinbase, Paxos, Gemini, BitStamp, and Galaxy Digital, used Silvergate as their banking partner. An alternative banking partner has now become necessary for a crypto hedge fund as a result of Coinbase's suspension of service.<\/p>\n\n\n\n

\n

Today Silvergate has lost

Coinbase
Circle
Paxos
Galaxy
CBOE

RIP https:\/\/t.co\/XlexB5u2wD\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a><\/p>— db (@tier10k) March 2, 2023<\/use><\/svg><\/span><\/a><\/blockquote>

After the upheaval surrounding Silvergate, Digital Asset Capital Management <\/use><\/svg><\/span><\/a>(DACM), a cryptocurrency hedge fund with assets worth over $400 million, said on March 3 that it is searching for a new banking partner in Switzerland.<\/p>\n\n\n\n

The real-time network of Silvergate was utilized by DACM to transfer money to and from the platform of Coinbase Global Inc.<\/p>\n\n\n\n

Although some American banks can handle cryptocurrency transactions, according to the DACM chief in an interview with Bloomberg, they are not as crypto-focused as Silvergate. He stated that they are “speaking to certain Swiss banks” and that finding a new partner could take some time.<\/p>\n\n\n\n

One of the first nations to regulate cryptocurrency banks and grant them banking licenses was Switzerland. Having obtained a banking and securities dealer license from the Swiss Financial Market Supervisory Authority<\/a> (FINMA) in August 2019, SEBA Bank AG (formerly SEBA Crypto AG) is a fully regulated organization. Because of its immediate and real-time bank transfer services, Silvergate was well-liked by cryptocurrency businesses.<\/p>\n\n\n\n

As a result, moving money may take longer without these facilities. At the moment, Signature Bank appears to be the preferred fintech bank for cryptocurrency businesses in the U.S. The banking transfers for Coinbase's Prime customers had already been moved to the Signature bank.<\/p>\n\n\n\n

For now, The Signature Bank might be the next best option for crypto companies, but how long will that last? A general exodus from the cryptocurrency industry began in early December 2022 when Signature Bank declared its desire to take up to $10 billion in deposits from customers who own digital assets.<\/p>\n\n\n\n

By ceasing to provide SWIFT financial services<\/a> to Binance, the bank has already cut its connections with the cryptocurrency exchange.<\/p>\n\n\n\n

The Silvergate fiasco has “increased the difficulty level” of sending money to cryptocurrency exchanges, even though crypto businesses have long had trouble finding a banking partner because the market lacks clear laws.<\/p>\n","protected":false},"excerpt":{"rendered":"

After fintech bank Silvergate lost five cryptocurrency partners on March second, crypto hedge fund Digital Asset Capital Management (DACM is searching for new banking partners in Switzerland. Most well-known cryptocurrency companies, including Coinbase, Paxos, Gemini, BitStamp, and Galaxy Digital, used Silvergate as their banking partner. An alternative banking partner has now become necessary for a […]<\/p>\n","protected":false},"author":12,"featured_media":46197,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[150,13650,13649,4864],"class_list":["post-46193","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-coinbase","tag-crypto-hedge-fund","tag-dacm","tag-silvergate-bank"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/03\/image-8.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/46193","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=46193"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/46193\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/46197"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=46193"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=46193"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=46193"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}