Signature Bank of New York will soon offer full banking services to financial technology firms in Bermuda, including crypto startups that have struggled to secure accounts.
In a press release Thursday night, the government of Bermuda announced that Signature would offer U.S. banking services to licensed fintech firms, including 66 startups already incorporated in the country.
When reached by CoinDesk, a spokesperson for Signature Bank confirmed that it would be providing these services.
Companies can apply for services effective immediately, the Bermudan government said.
Premier David Burt said in a statement that the island’s government had been working to “promote Bermuda as the destination of choice for FinTech companies looking for a place to domicile.”
Where others fear to tread
Banks have traditionally been “reluctant” to provide banking services for companies dealing with digital assets, he noted, explaining that there are concerns about running afoul of international regulations. He went on to say:
“Signature Bank’s willingness to consider Bermuda licensed businesses for banking services is a significant vote of confidence in and endorsement of Bermuda’s efforts to create a leading high standard regulatory regime for FinTech business.”
Signature Bank vice chairman John Tamberlane said in a statement that the company was “impressed” by Bermuda’s regulatory framework, and was looking forward to working “with the Government of Bermuda to help promote growth and expansion of the FinTech and digital asset industry in that country.”
Separately, the bank’s CEO and president, Joseph DePaolo, highlighted his organization’s work with Signet, its internal blockchain payment system.
“Signature Bank is one of the few banks in the U.S. that will provide deposit accounts and corporate debit cards to cryptocurrency startups but we are seeing non-crypto businesses signing up as well,” he said.
Bermuda premier David Burt (left) with Binance’s Changpeng Zhao image via Bernews