Coinbase abandons Silvergate for Signature Bank

Coinbase has announced that it will drop banking partner Silvergate, which is under regulatory scrutiny and investigation over its ties to collapsed crypto exchange FTX.

The latest development comes shortly after Silvergate announced it would delay filing its annual Form 10-k with the United States Securities and Exchange Commission (SEC).

• In a tweet thread On Wednesday, March 2, 2023, Coinbase revealed that the company will no longer be using Silvergate as a banking partner for its Coinbase Prime customers. The crypto exchange added that it has “minimal business exposure to Silvergate.
• “In light of recent developments and out of an abundance of caution, Coinbase is no longer accepting or initiating payments to or from Silvergate.”

At Coinbase, all customer funds continue to be safe, accessible, and available.

In light of recent developments and out of an abundance of caution, Coinbase is no longer accepting or initiating payments to or from Silvergate.

—Coinbase (@coinbase) March 2, 2023

• In a memo sent to Coinbase Prime customers, the company said the company was changing its USD banking partner to Signature Bank “effective immediately.”

“Coinbase Prime has elected to make changes to our USD banking partners. We are making withdrawals and fiat deposits easier using Signature Bank, starting today. We ask that you update your instructions Coinbase payment card to Signature Bank.

• Coinbase becomes the latest crypto company to ditch Silvergate for Signature Bank, after crypto derivatives exchange LedgerX recently made a similar move.
• Meanwhile, the latest development follows an earlier report in which Silvergate told the SEC it would delay filing its annual report on Form 10-k.
• The company, which reported a net loss of nearly $1 billion in the fourth quarter of 2022, said in its latest filing notice that it is expected to post further losses, which could cause Silvergate Capital and its subsidiary, Silvergate Bank, are “less than well capitalized”. .”