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Crypto exchange Coinbase announced its plans to drop support for Signet, the digital payments platform of the failed Signature Bank.
Coinbase no longer supporting Signature Bank’s Signet network
— unfolded. (@cryptounfolded) March 21, 2023
As per WSJ’s report, Coinbase plans to switch to another payments platform even though Signet remains operational. Moreover, Coinbase clients who used Signet for carrying out deposits and withdrawals will not be able to transfer funds to each other outside of traditional banking hours.
Meanwhile, the exchange claimed that this development will not affect USD Coin (USDC) to US Dollar (USD) conversions. In the words of Coinbase’s representative,
“In addition to traditional payment methods, crypto deposits, withdrawals, and conversions from USDC to USD are available 24/7 on Coinbase Exchange.”
The closure of the crypto-friendly Signature Bank served as a major blow to the crypto firms that were already reeling from Silicon Valley Bank’s collapse. Shortly after New York regulators closed Signature Bank on March 12, crypto platforms Coinbase, Binance, and Celsius announced their exposure to the bank.
Coinbase, in particular, revealed that the firm has roughly $240M tied up in Signature Bank. Fortunately, Coinbase’s user assets in banks remain FDIC insured, with the firm expecting a full recovery of these funds.