Coinbase Drops Silvergate In Favor Of Signature Bank
After reporting that its ability to continue was a going concern last night in a Form 12b, Silvergate Capital (NYSE: SI) appears to have additional problems on its hands as its liquidity dries up. Coinbase Global (NASDAQ: COIN) has evidently dropped the bank as a partner for Prime customers.
Moving forward Coinbase will be facilitating withdraws and deposits of US Dollars through that of Signature Bank (NASDAQ: SBNY), with the changes said to be effective immediately. The changes were identified in a notice sent to Prime customers by Coinbase this morning, asking its clients to update payment instructions as a result of the decision.
The move was said to be “out of an abundance for caution.”
Coinbase added that client cash is “held at FDIC-insured U.S. banks,” and that it has “de minimis corporate exposure to Silvergate.” Proactive measures reportedly have been taken to prevent clients from experiencing an impact due to the changes.
The changes follow Silvergate last night revealing that it expects to record additional losses than was previously reported, and that the bank is “less than well-capitalized.”
Silvergate Capital last traded at $7.46 in pre-market trading, down over 44%.
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