Between ongoing devastation in the U.S. banking sectors, many crypto firms are transferring their cash fund to Asset Managers such as Fidelity and investing in products like Treasuries to safeguard their customers.
Justin Bram, the CEO of Astaria, got surprised after seeing messages from 25 crypto-centric firms received on the Telegram channel after he asked to provide introductory calls to Fidelity based in Boston.
He stated that the list of firms that approached him includes large market makers and venture capital firms in digital assets. Justin Bram said that his business of non-fungible token lending had been tied with Fidelity for over a year.
Fidelity allows crypto startups to open brokerage accounts, using which they can invest in products like Treasuries. Bram said, “Fidelity isn’t a traditional bank, but they’re certainly safer than the tier-two-and-beyond banks.”
Currently, crypto firms are still looking for banking partners for their business after the collapse of three crypto-friendly banks in a row, including Silvergate bank, Signature Bank, and Silicon Valley Bank.
Seth Rosenthal, chief investment officer at Academy Asset Management, said earlier, “as a result of the bank failures and overall liquidity concerns, we saw a number of inbound calls” from traditional and crypto-related firms. These firms wish to invest their funds in Treasuries and other highly liquid government securities, which are also safer.
Rosenthal stated, “Traditional managers such as ourselves are able to manage their cash reserves through separately managed accounts. It allows clients to have direct ownership of the underlying securities.”
Also Read: NatWest Bank Caps Customers’ Crypto Transfers to £1,000 Per Day
“I would say if you have large cash balances at the bank, it’s really about reassessing how much you wanna keep at the bank. Do you want to put it into separately managed account, where you could own high quality, liquid assets, such as Treasuries?” he added.
