Crypto Firms Find a Way to Bank Without Banks

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The world of digital assets and cryptocurrencies has been expanding rapidly in recent years, but it has also faced significant hurdles when it comes to accessing traditional banking services. Regulators’ warnings and a series of bank failures have caused many banks to become wary of working with crypto clients. However, a handful of middlemen companies have stepped in to help keep the industry banked, allowing digital asset clients to access banking services through indirect banking arrangements.

The Role of Middlemen Companies

Middlemen companies are firms that provide intermediary services between banks and their clients. In the case of digital asset clients, these middlemen companies store cash on behalf of their clients in their own bank accounts or coordinate with banking partners to get accounts in their clients’ names. These companies also provide a range of other services, such as compliance monitoring, anti-money laundering checks, and other regulatory compliance support.

The Importance of Indirect Banking

While indirect banking isn’t unique to the crypto industry, its importance has become more pronounced due to the limited number of banks willing to work with digital asset firms. Banks have become increasingly cautious about working…