United States-based largest cryptocurrency exchange Coinbase has apparently retracted support from Signature Bank’s digital payments platform – Signet – after US regulators took over the banking authority.
According to The Wall Street Journal, on Monday, March 21, days after the US regulator’s takeover of Signature Bank, Coinbase Global will no longer support Signature Bank’s payment method, Signet, until further notice from the regulatory body.
Signet, a real-time payment network, offers exchange users to deposit and withdraw U.S. dollars, but now users can not transfer funds after traditional banking hours. This action brought a problem for the exchange and its users; hence, Coinbase is seeking a new technology partnership and waiting for another clarification notice on the outcome of Signet.
One of Coinbase’s spokespeople emphasized that users of the exchange are still able to make payments, cryptocurrency deposits, withdrawals, and swap USD Coin (USDC) to US dollars 24/7 at the United States’ largest cryptocurrency exchange – Coinbase.
Following ahead, Coinbase’s Spokesperson stated, “While not ideal, this shows a need for an updated financial System.
In the last few weeks, the finance industry of the US, such as Silicon Valley Bank, Silvergate Bank and Signature bank, witnessed the US largest banks collapse. These are the three largest bank crises in the US, as Signature bank was shut down on 12 March by US regulators.
Also Read: Coinbase offered Circle a $3 Billion backstop in an effort to Support USDC
