Coinbase has announced that it will be discontinuing its banking partner Silvergate, which is under regulatory scrutiny and investigation for its relationship with failed crypto exchange FTX.
The latest development comes on the heels of Silvergate’s announcement that it will defer its annual Form 10-k filings with the US Securities and Exchange Commission (SEC).
- and tweet thread On Wednesday (March 2, 2023), Coinbase clarified that the company will no longer use Silvergate as a banking partner for Coinbase Prime customers. “Corporate exposure to Silvergate is negligible,” the cryptocurrency exchange said.
- “In light of recent developments and out of an abundance of caution, Coinbase no longer accepts or initiates payments to or from Silvergate.”
At Coinbase, all customer funds remain safe, accessible, and available.
In light of recent developments and out of an abundance of caution, Coinbase no longer accepts or initiates payments to or from Silvergate.
— Coinbase (@coinbase) March 2, 2023
- In a memo sent to the Coinbase Prime Client, the company said it would “immediately effect” changing its USD banking partner to Signature Bank.
“Coinbase Prime has decided to make changes to its US dollar banking partners. We are using our signing banks to facilitate fiat currency withdrawals and deposits. We are asking Signature Bank to renew.”
- Coinbase becomes the latest crypto firm to drop Silvergate for Signature Bank after crypto derivatives exchange LedgerX recently made a similar move.
- Meanwhile, the latest development follows an earlier report that told the SEC that Silvergate would delay filing its annual Form 10-k report.
- The company, which posted a net loss of approximately $1 billion in the fourth quarter of 2022, is expected to post further losses in its latest filing notice, prompting Silvergate Capital and its subsidiary, Silvergate Bank, to declare a “capital loss.” shortage,” he said. “
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