• On March 2, 2023, Coinbase announced that it is no longer accepting or initiating payments to or from Silvergate Bank.
• Silvergate delayed its 2022 fiscal year 10-K filing with the SEC and JPMorgan has downgraded the company’s stock from „neutral“ to „underweight“.
• Coinbase stated that all client funds remain safe and accessible, but it will no longer be working with Silvergate due to recent developments.
Coinbase Cuts Ties With Silvergate Bank
On March 2, 2023, the cryptocurrency exchange Coinbase announced that it is no longer accepting or initiating payments to or from Silvergate Bank. This was in light of recent developments such as the crypto bank’s delay of its annual 10-K filing with the U.S. Securities and Exchange Commission (SEC) and JPMorgan’s downgrade of the company’s shares from „neutral“ to „underweight“.
Silvergate’s Shares Expected to Be Highly Volatile
Prior to the opening bell on Wall Street Thursday morning, Silvergate’s shares had slid 17.20% in value over the past five days. At 8:23 a.m. Eastern Time, Coinbase made its announcement that it would no longer be associated with Silvergate Bank for safety reasons. The company also stated that all client funds remain safe and accessible at Coinbase despite cutting ties with Silvergate Bank.
Ledgerx No Longer Working With Silvergate
Hours before the Coinbase announcement, CNBC reported that Silvergate’s stock was expected to be one of the most active during Thursday’s trading session. It was also reported that Ledgerx has informed customers that they will now be conducting wire transfers through Signature Bank rather than through Silvergates as they are no longer working together while Ledgerx was once part of FTX but is now not involved in their bankruptcy proceedings either.
Coinbase Statement Regarding Safety
Coinbase stated in their announcement regarding severing ties with Silvergates: “At Coinbase, all client funds continue to be safe, accessible and available.“ They further noted: “In light of recent developments and out of an abundance of caution, Coinbase is no longer accepting or initiating payments to or from Silvergate.“ They cleared up any doubts about safety by adding: “Coinbase has de minimis corporate exposure to Silvergates.“
Conclusion
The news follows a series of events including delays in SEC filings and a downgrade on JPMorgan’s part leading up to this point where we see both Ledgerx informing customers they will now be using Signature Bank instead while Coinbase cuts ties completely due to safety concerns while still assuring clients their funds are safe at Coinbase regardless