LedgerX Chooses Signature Bank over Silvergate Bank for Telegraphic Transfer Fund Receiver

03/03/2023 07:02 • NFT Newsflash • 141 views

It is reported that both Yahoo and Bloomberg disclosed that LedgerX has chosen to use Signature Bank as its telegraphic transfer fund receiver in order to keep a distance from Silvergate Bank, but Signature has not confirmed this news so far, The financial institution said in a statement: “Although we can’t comment on specific customers, we are still providing digital asset customers with the business of holding some US dollar deposits.” Due to the difficulties of Silvergate Bank, many encryption companies have said that they will no longer use their services and turn to Signature Bank, including Coinbase. （cryptoslate）

Signature Bank has not confirmed that LedgerX uses its services

Interpret the above information:

The news has been circulating that LedgerX, a platform for managing and trading cryptocurrencies, has opted to use Signature Bank as their telegraphic transfer fund receiver, distancing themselves from Silvergate Bank. The latter has faced difficulties in recent times, leading many other crypto companies to cut ties with them as well. However, at present, Signature Bank has not confirmed this news. The financial institution only issued a statement saying that they are still holding US dollar deposits for digital asset customers, but refrained from commenting further on specific clients.

This move by LedgerX to shift to Signature Bank is not surprising as many other companies that deal with cryptocurrencies have already done the same. One of the prominent names is Coinbase, which severed its ties with Silvergate Bank last year. The difficulties faced by Silvergate Bank are due to both market conditions and the broader economic situation. However, many attribute the bank’s troubles to issues with clients dealing with cryptocurrencies, as it made heavy investments in the industry.

The move by LedgerX to choose Signature Bank as its telegraphic transfer fund receiver, instead of Silvergate Bank, indicates that there is a growing need for banks that can support the digital asset industry. Although the US government is working on creating clear regulations for cryptocurrencies, there is still a considerable amount of regulatory ambiguity in the market. Many banks find it challenging to navigate these uncertainties, leading to difficulties for them and their clients dealing with cryptocurrencies.

Therefore, the need for banks that can provide support to the crypto industry, without facing additional regulatory pressures, is increasing. Banks that show they can deliver both reliability and security and confident regulation play a significant role in providing clients with the trust they need in the market. In conclusion, the choice of LedgerX to switch to Signature Bank highlights the growing need for banks that can accommodate digital assets, especially with the expected growth of the industry in the future.

In summary, the news about LedgerX choosing Signature Bank over Silvergate Bank is an indication of the growing need for reliable financial institutions that can support the digital asset industry. Due to the difficulties of Silvergate Bank, many companies dealing with cryptocurrencies, including Coinbase, cut ties with them and shifted to Signature Bank instead. The move highlights the challenge of navigating regulatory ambiguities in the crypto market and the need for banks that can provide dependable support.

Overall, three keywords that stand out in the article are: cryptocurrencies, digital assets, and banks.

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LedgerX Chooses Signature Bank over Silvergate Bank for Telegraphic Transfer Fund Receiver

Signature Bank has not confirmed that LedgerX uses its services

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