Due to the popularity of cryptocurrency, a Seattle-based crypto exchange named “Bittrex” has just signed an agreement with New-York based Signature Bank that will allow corporate investors to trade fiat for selected cryptocurrencies. Bittrex has over 3 Million active customers worldwide who will be able to trade fiat currency for Bitcoin (BTC), Tether and TrueUSD and other over 200 cryptocurrencies.
They really do look and pore through the entire business. They want to make sure that we’ve got robust AML/KYC (anti-money laundering/know your customer) processes, that we’ve got the right controls on our finances. They do background checks and everything. They really look at our business soup to nuts. It’s not just about banks being able to trust Bittrex. It’s about banks being able to trust crypto in general. And I think it’s really showing that crypto is turning the corner in terms of mainstream acceptance Bill Shihara, CEO Bittrex
According to sources, this service will only be open to corporate customers in the states of Washington, California, New York and Montana. Bittrex is looking forward to offering crypto-fiat trading to retail customers as well. In the meantime, Bittrex needs to work with selected central banks in order to offer crypto-fiat and crypto-crypto trading on their platforms just like US crypto exchange Coinbase, who has developed relationships with Cross River Bank, Metropolitan Bank, Silvergate Bank and Barclays.
All the crypto exchanges are working on federal banking charter to pass a legislation after which they won’t need a bank to operate in the open trade market.