- Insider sources say Noble Bank International is looking to sell itself for $5 to 10 million.
- Anonymous sources claim the bank has become less profitable since losing most of its clients in the cryptospace like Tether and Bitfinex.
- Unconfirmed sources say BNY Mellon Corp., which Noble Bank claims is its custodian, has dissociated itself from the distressed crypto-friendly financial institution.
Noble Bank, a Puerto Rico-based financial institution that services cryptocurrency-linked businesses including Bitfinex and Tether, is reportedly up for sale, due to its dwindling fortunes partly caused by the slump in the price of bitcoin and altcoins, reported Bloomberg on October 2, 2018.
End of the Road for Noble Bank?
Noble International Bank, a Puerto Rican financial institution that claims to be a full reserve bank offering real-time post-trade services to over-the-counter (OTC) markets, foreign exchange and cryptos, has run into stormy weather in its business and has now reportedly put itself up for sale.
Per a Bloomberg report , citing anonymous sources, the bank which had earlier opened its doors to cryptocurrency-related businesses such as the 8th largest cryptoassets exchange in the world, Bitfinex and the controversial US dollar-backed stablecoin, Tether (USDT), when the price of established cryptos was hitting the moon, is now facing severe financial meltdown.
Noble International Bank has reportedly lost most of its clients including Bitfinex and Tether, and things are no longer as rosy as they used to be.
However, even with Noble’s failing financial health, sources say it could still generate from $5 to $10 million from the deal since it’s a licensed international financial entity under Puerto Rican laws.
Noble’s Misfortune May Not Be Entirely Caused by Crypto Markets Crash
Although the international bank’s liberal stance towards crypto-linked businesses came as a surprise to observers, as many large banks shy away from blockchain startups citing the unregulated and super volatile nature of the industry, the full reason behind Noble’s sale is yet to be fully revealed.
While neither Bitfinex nor Tether (USDT) have confirmed the rumor or released an official statement concerning the matter, Noble’s misfortune may however not have been triggered entirely by the two distributed ledger technology (DLT) startups, as Puerto Rico’s financial watchdogs had earlier scrutinized the operations of Noble, raising concerns from its clients.
Also, it’s worth noting that anonymous sources have reportedly revealed that Bank of New York Mellon Corp. which Noble claims is its custodian, has stopped working with the bank.