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Coinbase shifts US dollar banking business from Silvergate to Signature Bank

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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. Thi…

Coinbase shifts US dollar banking business from Silvergate to Signature Bank

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

Interpretation of the news:


Coinbase, the popular cryptocurrency exchange, has announced a change in its banking relationship for US dollar transactions. The San Francisco-based company is replacing Silvergate Bank with Signature Bank for its Prime customers. The move is aimed at streamlining its banking infrastructure, to ensure improved efficiency and provide better customer experience. However, it is worth noting that this change is specific only to the US dollar banking business and will not impact other currencies like sterling or euro.

This switch from Silvergate Bank to Signature Bank also implies a reduction in Coinbase’s corporate risk exposure to Silvergate, which the company claims to be low. This move by Coinbase follows other large crypto exchanges who have made a similar shift to maintain the technological growth of the industry while improving their financial systems, giving customers the best possible service. It is suggested that this change will strengthen its banking partnerships and allow it to have some of the best banking relationships within the industry.

Silvergate Bank is a known banking partner for the cryptocurrency industry and provides services to several cryptocurrencies-focused firms. The bank has had a long-term relationship with Coinbase, which started with providing it with transaction services for stablecoin USDC back in 2018. However, after the partnership, Silvergate has grown along with the booming crypto industry, with over 1,200 clients, as the bank specializes in providing fiat banking services in crypto.

Signature Bank, on the other hand, is a commercial bank known for its digital asset department, which provides services for stablecoin issuers and digital asset executives. It had been gaining traction recently due to the shift to digital assets occurring worldwide.

In conclusion, this change of banks is a strategic move by Coinbase in its bid to remain competitive in the cryptocurrency exchange market while streamlining its banking infrastructure. It will undoubtedly strengthen its banking relationships while allowing it to offer its customers the best services possible. However, it remains to be seen how this change will affect other partnerships of Coinbase, and if this shift will bring the company their intended benefits.

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