Customers Bank Said to Debank Some Digital Asset Hedge Funds
Summary
Customers Bank has stopped providing banking services to some hedge-fund clients, including those in the crypto industry. The bank, owned by Customers Bancorp, does not deal in cryptocurrency or support crypto activities. It offers a real-time blockchain-based payments platform to over a hundred digital asset firms. The bank has a 15% cap on deposits in this vertical and is selective with new clients. This move reflects the challenges faced by some crypto companies in accessing the U.S. dollar banking system after the collapse of Silvergate Bank and Signature Bank last year. The total deposits at the end of the first quarter were about $18 billion, with the blockchain-based platform contributing around $2 billion.
