Crypto Giant Coinbase Dumps Troubled Silvergate for Signature Bank"

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Welcome to my. post today . I will be sharing the recent news of Coinbase severing ties with Silvergate and opting for Signature Bank as its new banking partner.

Coinbase Drops Silvergate as Banking Partner Amid Regulatory Scrutiny

This decision by Coinbase to drop Silvergate comes at a time when the banking partner is undergoing regulatory scrutiny and investigations regarding its ties to the collapsed crypto exchange FTX. Coinbase has made it clear that it has "de minimis corporate exposure to Silvergate," but in light of recent developments and out of an abundance of caution, it has decided to sever ties with the banking partner.

In a tweet thread on March 2, 2023, Coinbase announced that it will no longer use Silvergate as a banking partner for its Coinbase Prime customers. Instead, the crypto exchange will be using Signature Bank as it new USD banking partner effective immediately. Coinbase has asked its customer to update their Coinbase payment instructions to Signature Bank. Click here to see the tweet

Coinbase is not the only crypto company to make this move . The crypto derivatives exchange LedgerX has also recently dropped Silvergate for Signature Bank.

The latest development comes on the heels of an earlier report where Silvergate told the SEC that it would delay the filing of its annual form 10-k report . The company recorded a net loss of nearly $1 billion in Q4 2022 and expects to record further losses, which could make Silvergate Capital and its subsidiary, Silvergate Bank, "less than well-capitalized."

In conclusion, Coinbase's decision to sever ties with Silvergate and opt for Signature Bank as its new banking partner is a move that reflects the cautious nature of the crypto industry . With increased regulatory scrutiny and investigations, crypto companies are taking a more careful approach to their banking partners.