Binance.US, the US arm of Binance, is rushing to find a new banking partner after state regulators closed its previous partner — New York-based Signature Bank, the Wall Street Journal (WSJ) has learned, citing people familiar with the matter.
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The people say the exchange is relying at least on one intermediary to store its capital from US clients. They also noted Binance.US may slow down moving its funds given that the money is being held by a third party.
Sources added Binance.US unsuccessfully tried to reach an agreement with Cross River Bank and Customers Bancorp. However, the banks were reluctant, citing concerns over regulatory risk, the sources say.
The difficulties in finding a new banking partner have already impacted the exchange's services. According to the Binance.US status page, some USD deposit services "will be temporarily impacted during the transition. Apple Pay and Google Pay deposits are temporarily unavailable."
A spokesperson for Binance.US told the WSJ that the company continues to onboard "new partners while upgrading our internal systems to create a more stable fiat platform and offer additional services."
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