I have begun to re -encrypt the bank

For encryption companies, the transformation of the atmosphere is a blessing. Although they have relatively few problems in reaching external bank accounts-often in the Cayman Islands or Switzerland-Birma from an American bank account, they are often unable to gain the return on deposits or transactions smoothly with the interviews in the United States, and sometimes they bear high Account fees. They do not benefit from deposit insurance under the Federal Federal Deposit Insurance Corporation, which guarantees up to $ 250,000 per account holder.

Although some banks with large names, such as JP Morgan, are Experimental of encryption techniques For internal use, many are still reluctant to provide accounts for encryption companies, the sources say. “The banks that John Du heard are not related to encryption,” David McCaine, CO, claims at Doublezero, a startup to develop infrastructure for networks of encryption networks.

But this created an opening for the smaller technology to expand their deposit rules by collecting customers in the encryption industry. “Basically, the founders of these days go with mercury or mate,” Khan claims. “Meow was very aggressive in terms of communicating with the founders at any time they see a declaration of fundraising.”

This technology tends to market themselves as encryption forward-which provides integrated services such as Stablecoin transfers– And less strangled by their traditional counterparts; The 30 -year -old Mow CEO, Brandon Arfanagi, runs LinkedIn profile It is somewhat similar to the Tiktok account, with its completion The video crawls.

“This American technology has a much better technology than Random Bank X in the Kayman Islands or Switzerland. They have better platforms, better support – everything,” says Mcintyre.

Mercury refused an interview with this article. And he did not respond to the interview requests.

In practice, this technology acts as a software class at the head of the traditional bank with an American license; They deal with the user interface and customer acquisition, while the bank runs the deposit. meow Partners With the Ganda Bank; Brex and Mercury Partner with many banks. This was the model Rely In the United States during the Covid-19s, which forced banks to find ways to reach customers digitally.

“At its best forms, it is a way for banks to reach a better technology,” says Craig Tim, chief manager to combat money laundering in ACAMS, who runs the programs of financing. Timm previously worked as a financial crime specialist in Bank of America and the US Department of Justice. “For technology, it allows them to focus on the things they are good at – construction, marketing, and access to new customers – without obtaining a bank license, which may be difficult and costly.”

But the arrangement usually requires Fintech to follow the basic rules determined by the partner bank, including parameters about the customer types allowed to serve. For example, Mercury cannot provide accounts for encryption companies that embrace customer boxes, including stock exchanges, a WIRED spokesman said.

“They are putting skin over another person’s bank,” says Macintier, who was previously working in Brex. “They must adhere to the requirements of subscription, regulations and design about what customers must.”