•Gemini denies reports of banking relationship ending with JPMorgan
•Crypto exchanges have been facing banking issues recently
•Kraken has plans to launch its own bank
Gemini Denies Reports of Banking Relationship Ending With JPMorgan
Gemini, the crypto exchange co-founded by the Winklevoss twins, has denied reports that its banking relationship with U.S. banking giant JPMorgan has ended. In a tweet on March 8th, Gemini said their “banking relationship remains intact”. Coindesk previously reported that JPMorgan had ended its relationship with the exchange. Additionally, Gemini’s website states it maintains relationships with other banks including Signature and State Street.
The business relationship between Gemini and JPMorgan began in 2020; at the same time, JPM also took rival exchange Coinbase as a client. Recently, the relationships between several crypto firms and their banking partners have been intensely scrutinized by regulators due to FTX’s collapse and subsequent regulatory scrutiny which led to several crypto-friendly banks reducing their exposure to the industry. Signature Bank initially revealed intentions to reduce its crypto exposure and Silvergate revealed a $1 billion loss in the last quarter of 2022, leading many clients to dump it.
Financial regulators and lawmakers have advised banks on the risks of cryptocurrencies while major financial institutions continue investing in them such as Kraken’s plan to launch its own bank which is “very much on track” according to Marco Santori who is Kraken’s chief legal officer.
Signature Bank & Silvergate
Signature Bank announced it would no longer process cryptocurrency transactions worth less than $100,000 whereas Silvergate discontinued its Silvergate Exchange Network and is working with the US Federal Deposit Insurance Corporation (FDIC) for help during this difficult period for them as a bank.
Overall, despite reports from Coindesk claiming otherwise, Gemini continues its banking relationship with JPMorgan while other cryptocurrency exchanges are dealing with various issues related to banking partners like Signature Bank and Silvergate who have taken steps either limit or terminate their involvement in cryptocurrency transactions altogether due increasing regulatory scrutiny within recent years.