Crypto firms face challenges accessing US bank accounts while overseas accounts lack deposit insurance and yield. Major banks are hesitant to serve these firms, leading to opportunities for smaller fintechs like Mercury and Meow. These fintechs offer integrated services tailored for the crypto industry and position themselves as more approachable than traditional banks. Their technology is perceived to be superior, with better customer support. They effectively act as interfaces connecting users to regulated banking systems, enhancing engagement with the crypto sector.
Although they have comparatively few problems accessing overseas bank accounts-often in the Cayman Islands or Switzerland-in lieu of a US bank account, they are often unable to earn yield on deposits or transact seamlessly with US-based counterparties, and sometimes incur high account fees.
These fintechs tend to market themselves as crypto-forward-providing integrated services like stablecoin transfers-and far less stuffy than their traditional counterparts; Meow's roughly 30-year-old CEO, Brandon Arvanaghi, runs his LinkedIn profile a bit like a TikTok account.
Basically, founders these days are going with a Mercury or Meow. Meow has been super aggressive in terms of reaching out to founders anytime they see a fundraising announcement.
These American fintechs have much better technology than random bank X in the Cayman Islands or Switzerland. They have better platforms, better support-better everything.
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