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Coinbase Users Unable To Use Signet Payment Network Following Signature Bank’s Collapse
Coinbase has announced that it will no longer support Signet, the real-time payment network of collapsed Signature Bank, until further notice.
According to a report from The Wall Street Journal on March 20, Coinbase users will not be able to use Signet to send funds outside of banking hours. Coinbase has said that it is currently searching for a new payment network provider and is waiting for clarification on the situation with Signature Bank.
For those Coinbase users who relied on Signet for U.S. dollar deposits or withdrawals, they will no longer be able to send funds to each other outside of traditional banking hours. However, the company has assured its customers that they can still make crypto deposits, withdrawals, and conversions from USDC to USD 24/7 on Coinbase Exchange.
Signature Bank’s collapse marks the third-largest bank failure in U.S. history, following the collapse of Silicon Valley Bank earlier this year. New York Community Bancorp’s Flagstar Bank has acquired most of Signature Bank’s assets after regulators closed the bank on March 12.
The fate of Signet, a blockchain-based digital payments platform, remains uncertain. The payment network, launched by Signature in 2019, counted some of the biggest crypto players as clients, including stablecoin issuer Circle Internet Financial.
Despite pulling back from serving crypto clients earlier this year after the implosion of crypto exchange FTX, Signature Bank still had billions of dollars in deposits from crypto clients prior to its failure. Signet allows crypto companies to send U.S. dollars to each other 24/7/365, which benefits traders in need of instant payment and stablecoin companies relying on fast payment rails to create and redeem stablecoins.
Coinbase, Celsius and Paxos all had funds tied to Signature Bank at the time of its closure. While Coinbase said it expects $240 million in corporate assets to be “fully recovered,” Paxos reported $250 million held at the bank, and Celsius announced some exposure but not the exact amount. The U.S. Federal Deposit Insurance Corporation has announced that the bank’s deposits and loans, with the exception of roughly $4 billion in crypto deposits, would be sold to New York Community Bancorp’s Flagstar Bank. The government corporation said it planned to provide crypto deposits “directly to customers” with a digital banking account.
#Coinbase #Signet #SignatureBank #SVB #azcoinnews
This article was republished from azcoinnews.com
According to a report from The Wall Street Journal on March 20, Coinbase users will not be able to use Signet to send funds outside of banking hours. Coinbase has said that it is currently searching for a new payment network provider and is waiting for clarification on the situation with Signature Bank.
For those Coinbase users who relied on Signet for U.S. dollar deposits or withdrawals, they will no longer be able to send funds to each other outside of traditional banking hours. However, the company has assured its customers that they can still make crypto deposits, withdrawals, and conversions from USDC to USD 24/7 on Coinbase Exchange.
Signature Bank’s collapse marks the third-largest bank failure in U.S. history, following the collapse of Silicon Valley Bank earlier this year. New York Community Bancorp’s Flagstar Bank has acquired most of Signature Bank’s assets after regulators closed the bank on March 12.
The fate of Signet, a blockchain-based digital payments platform, remains uncertain. The payment network, launched by Signature in 2019, counted some of the biggest crypto players as clients, including stablecoin issuer Circle Internet Financial.
Despite pulling back from serving crypto clients earlier this year after the implosion of crypto exchange FTX, Signature Bank still had billions of dollars in deposits from crypto clients prior to its failure. Signet allows crypto companies to send U.S. dollars to each other 24/7/365, which benefits traders in need of instant payment and stablecoin companies relying on fast payment rails to create and redeem stablecoins.
Coinbase, Celsius and Paxos all had funds tied to Signature Bank at the time of its closure. While Coinbase said it expects $240 million in corporate assets to be “fully recovered,” Paxos reported $250 million held at the bank, and Celsius announced some exposure but not the exact amount. The U.S. Federal Deposit Insurance Corporation has announced that the bank’s deposits and loans, with the exception of roughly $4 billion in crypto deposits, would be sold to New York Community Bancorp’s Flagstar Bank. The government corporation said it planned to provide crypto deposits “directly to customers” with a digital banking account.
#Coinbase #Signet #SignatureBank #SVB #azcoinnews
This article was republished from azcoinnews.com
