3 Strategies Crypto Firms Can Use to Get a New Banking Partner

If your crypto firm is looking for a new bank, you’re not alone.

The recent collapse of three crypto-friendly banks has added a new hurdle for digital asset firms still grappling with the impact of crypto winter and a regulatory breach.

But communication can play a key role in helping you define your public image and the potential risks associated with your business – factors that potential banking partners pay close attention to.

Brett Philbin is executive vice president, Rachel Millard is senior vice president and Rosie Gillam is senior vice president in Edelman Smithfield’s Financial Services Practice.

Below are three strategies that can help in the banking courtship process:

There is great value in ensuring that the controlled elements of your business are front and center. Crypto is the least trusted of the financial services subsectors, according to the 2023 Edelman Trust Barometer, which surveyed more than 32,000 respondents in 28 countries in November.

That’s a big reason why it’s critical that licenses, registrations, and compliance standards are included prominently on your website. Consider making them central to the “about company” message. Highlight any compliance or financial health measures your company is taking. Make sure the CRO or CFO is featured on the website along with their bios.

This step sends the message to potential banking partners that you have someone in-house who can interact with them in the way they are used to working. These seemingly minor changes are valuable: They highlight the steps you’ve taken to reduce risk in the company.

Assume that potential banking partners will do their homework by visiting your company’s website and social channels to deepen their understanding of your business, your management team, and recent developments that may influence whether or not they choose to work with you.

Make sure important information is accessible and understandable (take time to carefully craft your “about” page). This is especially important if you operate in a niche category within the wider crypto ecosystem.

A decentralized exchange, for example, should be explicit in explaining how it differs from a centralized exchange, to help less skilled audiences understand the nuanced differences between the two.

Beyond the website, be sure to do a quick refresh of your social channels. Your online presence and behavior can play a role in the evaluation process. Use these channels to communicate updates about the company, including any recent developments that demonstrate long-term viability, such as customer wins, partnerships and product launches.

On the other hand, while Crypto Twitter is flooded with hot policies, consider whether your company is in the best position to contribute to this conversation. Banks considering potential partners may weigh the liability associated with a firebrand corporate executive who is willing to tweet at any regulator without regard to the impact it might have on their image.

For many organizations, it is better to skip the hot-take policy tweet and instead consider partnering with industry organizations to further these concerns and goals.

Trade associations carry weight in Washington, DC. They are able to take tough policy positions publicly and generate media interest for them in a way that individual companies cannot.

These organizations can also help facilitate productive and impactful backroom conversations with decision makers and facilitate introductions to potential partners and allies that can be helpful in driving long-term growth strategies for your business.

Now more than ever, it’s clear that the first stop on the road to mass crypto adoption is for firms to find a bank they can trust. The right communication strategy can help ensure that you don’t end up settling for a tier-2 or tier-3 banking option. Use these tactics to speed up your transition to a new banking partner today.