Coinbase drops Silvergate for Signature for Prime customers
Coinbase is telling its Prime customers to use Signature Bank instead of Silvergate amid news the latter may be in financial trouble.
“Coinbase Prime has elected to make changes to our USD banking partners. We are facilitating fiat withdrawals and deposits using Signature Bank, effective immediately,” the firm said in a message to customers.
The news comes after Silvergate told the U.S. Securities and Exchange Commission on Wednesday that it may be “less than well-capitalized” and said it was “reevaluating its business” in a filing with the agency. Shares hit an all-time low in pre-market trading.
“In light of recent developments & out of an abundance of caution, Coinbase is no longer accepting or initiating payments to or from Silvergate & will be facilitating institutional client cash transactions with our other banking partners,” the company said in an email to The Block.
“Coinbase has de minimis corporate exposure to Silvergate,” a spokesperson added.
Silvergate, a large bank for fintech and crypto, said it would not be able to file its annual financial report on time. It noted that it expected to “record further losses related to the other-than-temporary impairment on the securities portfolio.”
© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Go to Source
Author: Christiana Loureiro