On March 2, 2023, the cryptocurrency exchange Coinbase revealed that, due to current advancements, the business is “no longer accepting or initiating payments to or from Silvergate Bank.” The news follows the crypto bank’s hold-up of its yearly 10-K filing with the U.S. Securities and Exchange Commission (SEC) and JPMorgan’s downgrade of the business’s shares from “neutral” to “underweight.”
Coinbase Cuts Ties With Silvergate Bank, Firm’s Shares Expected to Be Highly Volatile After Recent Developments
Coinbase revealed on Thursday that it is no longer accepting or starting any payments to or from the crypto-friendly bank Silvergate. Recently, Silvergate delayed its 2022 10-K filing with the SEC, mentioning the requirement for more time to finish the filing. Following the hold-up, the banks JPMorgan reduced the business’s stock from “neutral” to “underweight.”
Prior to the opening bell on Wall Street Thursday early morning, Silvergate’s shares had actually moved 17.20% in worth over the previous 5 days. At 8:23 a.m. Eastern Time, Coinbase made its statement. “At Coinbase, all client funds continue to be safe, accessible and available,” the business tweeted. “In light of recent developments and out of an abundance of caution, Coinbase is no longer accepting or initiating payments to or from Silvergate.”
While more keeping in mind that funds held at Coinbase are safe, the business added:
Coinbase has de minimis business direct exposure to Silvergate.
The JPMorgan downgrade and Coinbase statement concerning Silvergate come amidst reports that the crypto derivatives platform Ledgerx has actually notified consumers that it is no longer dealing with Silvergate. The declared e-mail sent out by Ledgerx to consumers states that wire transfers will now be performed through Signature Bank.
Although Ledgerx was when part of the FTX business, it is now among the subsidiaries not associated with the FTX insolvency procedures. Hours prior to the Coinbase statement, CNBC reported that Silvergate’s stock was anticipated to be among the most active throughout Thursday’s trading session.
What effect do you believe the current advancements including Silvergate Bank will have on the cryptocurrency market as a whole? Share your ideas about this topic in the comments area below.
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