Coinbase Switches US Dollar Banking Business from Silvergate Bank to Signature Bank

03/02/2023 13:27 • Blockchain Buzz • 157 views

It is reported that Coinbase announced that it would replace the US dollar banking business from Silvergate Bank to Signature Bank for its Prime customers. This change is specific to the US dollar banking business, does not affect the payment instructions of sterling or euro, and will take effect immediately. In addition, Coinbase said that its corporate risk exposure to Silvergate was very small.

Coinbase: Silvergate is no longer used as the USD bank partner of Prime customers

Interpret the above information:

Coinbase, one of the largest cryptocurrency exchanges in the world, has announced plans to replace its US dollar banking business from Silvergate Bank to Signature Bank for its Prime customers. This change, which only applies to the US dollar banking business, is said to have no effect on payment instructions of sterling or euro, and will take place immediately. The announcement by Coinbase is a clear indication of its commitment towards providing the best service to its customers and enhancing its infrastructure.

The decision to switch from Silvergate bank to Signature Bank is not only vital for Coinbase but also to other cryptocurrency exchanges using Silvergate’s banking services. According to sources, Silvergate has been a prominent partner to many cryptocurrency firms, but as the market rapidly changes, it is crucial for those firms to seek other banking services from companies like Signature Bank who can provide the best banking services that meet industry standards.

Coinbase’s announcement also sought to assure its customers that the risk exposure to Silvergate was relatively low. By moving to Signature Bank, Coinbase can keep up with the fast-paced cryptocurrency industry and ensure the safety of its customer’s funds. Customers of the exchange will also benefit as Signature bank offers various services for its high net worth clients, including wealth management, fiduciary services, and investment management.

This move by Coinbase only underscores the importance of having reliable, secure banking infrastructure in the cryptocurrency industry. The industry faces many regulatory and operational changes which have led to many banks shying away from offering banking services to cryptocurrency firms. However, Signature Bank and other banks that offer such services continue to step up to provide the necessary banking infrastructure to support the cryptocurrency industry.

In conclusion, Coinbase’s decision to switch its US dollar banking business from Silvergate to Signature bank is a significant step towards enhancing the cryptocurrency industry’s infrastructure. The move will not only benefit Coinbase but other cryptocurrency exchanges that are banking with Silvergate. It also highlights the importance of having reliable banking infrastructure, especially for the cryptocurrency industry.

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