Coinbase, the largest cryptocurrency exchange in the U.S. in terms of trading volume, today announced it is halting payments to and from Silvergate bank.
Citing recent developments around the San Francisco-based crypto bank and “out of an abundance of caution,” Coinbase said it is “no longer accepting or initiating payments to or from Silvergate.”
“Coinbase will be facilitating institutional client cash transactions with our other banking partners and have taken proactive action to help ensure that clients experience no impact from this change,” the exchange said in a Twitter thread Thursday.
Coinbase will be facilitating institutional client cash transactions with our other banking partners and have taken proactive action to help ensure that clients experience no impact from this change.
— Coinbase (@coinbase) March 2, 2023
Coinbase went on to say that it holds client funds at FDIC-insured U.S. banks and government money market funds when “when a client has a large dollar balance.”
The exchange also assured that it has “de minimis corporate exposure to Silvergate.”
LedgerX, one of the few entities that remained solvent in the aftermath of the FTX collapse, made a similar move earlier this week, saying that going forward it will use Signature Bank instead.
Editor’s note: This story is breaking and will be updated soon.
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Source: https://decrypt.co/122550/coinbase-halts-payments-silvergate-bank
