On March 2, 2023, cryptocurrency exchange Coinbase announced that in light of recent developments, the company will “no longer accept or initiate payments with Silvergate Bank.” The news follows the crypto bank’s postponement of its annual 10-K filing with the U.S. Securities and Exchange Commission (SEC) and JP Morgan’s downgrade of the company’s stock from “neutral” to “underweight.”
Coinbase has dissolved its partnership with Silvergate Bank, a recent development that is expected to cause significant volatility in the company’s stock
Coinbase announced Thursday that it will no longer accept or initiate any payments with crypto-friendly bank Silvergate. Recently, Silvergate delayed the filing of its fiscal year 2022 10-K with the SEC, citing that it needed more time to complete the filing. In response to the delay, financial institution JPMorgandowngraded the company’s stockfrom “neutral” to “underweight.”
prior to the opening bell on Wall Street on Thursday morning. Silvergate’s stockhad lost 17.20% of its value over the past five days. At 8:23 a.m. Eastern time, Coinbase made that announcement.” At Coinbase, all client funds remain safe, accessible, and available.” The companytweeted. “In light of recent developments and out of an abundance of caution, Coinbase will no longer accept or initiate payments to or from Silvergate.”
Further stating that funds held at Coinbase are safe,added:
Coinbase has a minuscule corporate exposure to Silvergate.
JPMorgan’s downgrade and Coinbase’s announcement regarding Silvergate came amidstpressthat crypto derivatives platform Ledgerx has informed customers that it has terminated its partnership with Silvergate An email allegedly sent by Ledgerx to customers stated that wire transfers would now be made through Signature Bank.
Ledgerx was once part of FTX, but is now one of the subsidiaries not involved in FTX’s bankruptcy proceedings. Hours before Coinbase’s announcement, CNBCreportedthat Silvergate’s stock was expected to be the most active in Thursday’s trading session.
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