The closure of Signature Bank, a New York-based financial institution that had been dubbed “crypto-friendly” by many in the cryptocurrency industry, is yet another blow to the industry. Signature Bank had been one of the few banks in the United States to offer banking services to cryptocurrency businesses, and its closure is a sign of the ongoing struggle of the industry to gain mainstream acceptance.
The bank’s closure was announced in October, just months after it had announced that it was launching a new banking platform for cryptocurrency companies. According to reports, the bank had been working on the project for more than a year, and had partnered with the Winklevoss twins’ Gemini exchange to offer banking services to cryptocurrency businesses.
Signature Bank’s closure is a reminder of the challenges that cryptocurrency businesses still face in terms of gaining access to mainstream banking services. The lack of financial infrastructure for the industry is one of the major hurdles that it needs to overcome if it is to achieve widespread adoption. With Signature Bank now gone, the industry will need to find new banking partners if it is to continue to grow.