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Crypto exchange Kraken will stop processing automated clearinghouse (ACH) transfers after March 27 due to the collapse of its banking partner, Silvergate Bank.
An automated clearinghouse (not to be confused with the crypto token Alchemy Pay) is a system that allows firms to process digital fund transfers.
No more ACH deposit/withdrawal on Kraken. #chokepoint2point0 pic.twitter.com/47IbaMv2yY
— Army of Spies (@ArmySpies) March 22, 2023
Earlier, Silvergate Bank was responsible for processing ACH withdrawal requests for Kraken. Meanwhile, ACH deposits on Kraken’s platform were managed by the fintech firm Plaid.
However, Silvergate Bank collapsed at the beginning of March, resulting in Kraken and other crypto platforms terminating their relations with the firm.
According to the email sent to its clients, Kraken will remove ACH deposit and withdrawal services on March 27. The exchange claimed that none of the other services, including ACH Instant Purchases via Online Banking, will be affected by this suspension.
Kraken noted that the pause on ACH transfers will be a temporary one, adding,
“We are working to make ACH funding options available through alternative funding providers as soon as possible and will communicate details with clients as soon as we can.”