Binance’s US division is struggling to secure a new bank partner to facilitate fiat on-ramps and off-ramps for its American clients, according to a report by the Wall Street Journal on April 8. The report stated that recent failures by Signature Bank and Silvergate have left Binance.US without banking services, forcing the exchange to rely on middleman banks to hold funds on its behalf.
Regulatory crackdowns on banks servicing crypto clients have contributed to the exchange’s difficulties. Binance.US needs a bank to directly hold its clients’ US dollars, but efforts to establish direct banking relationships with banks like Cross River Bank and Customers Bancorp have failed. The exchange has stated that it is transitioning to new banking and payment service providers, but the absence of a direct bank has impacted some US dollar deposit services.
