Coinbase Severs Ties With Silvergate Bank Amidst JPMorgan Downgrade and Delayed SEC Filing

On March 2, 2023, the cryptocurrency speech Coinbase announced that, successful airy of caller developments, the institution is “no longer accepting oregon initiating payments to oregon from Silvergate Bank.” The quality follows the crypto bank’s hold of its yearly 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.”

Coinbase Cuts Ties With Silvergate Bank, Firm’s Shares Expected to Be Highly Volatile After Recent Developments

Coinbase announced connected Thursday that it is nary longer accepting oregon initiating immoderate payments to oregon from the crypto-friendly slope Silvergate. Recently, Silvergate delayed its 2022 fiscal twelvemonth 10-K filing with the SEC, citing the request for much clip to implicit the filing. Following the delay, the fiscal instauration JPMorgan downgraded the company’s banal from “neutral” to “underweight.”

Prior to the opening doorbell connected Wall Street Thursday morning, Silvergate’s shares had slid 17.20% successful worth implicit the past 5 days. At 8:23 a.m. Eastern Time, Coinbase made its announcement. “At Coinbase, each lawsuit funds proceed to beryllium safe, accessible and available,” the institution tweeted. “In airy of caller developments and retired of an abundance of caution, Coinbase is nary longer accepting oregon initiating payments to oregon from Silvergate.”

While further noting that funds held astatine Coinbase are safe, the institution added:

Coinbase has de minimis firm vulnerability to Silvergate.

The JPMorgan downgrade and Coinbase announcement regarding Silvergate travel amid reports that the crypto derivatives level Ledgerx has informed customers that it is nary longer moving with Silvergate. The alleged email sent by Ledgerx to customers states that ligament transfers volition present beryllium conducted done Signature Bank.

Although Ledgerx was erstwhile portion of the FTX company, it is present 1 of the subsidiaries not progressive successful the FTX bankruptcy proceedings. Hours earlier the Coinbase announcement, CNBC reported that Silvergate’s banal was expected to beryllium 1 of the astir progressive during Thursday’s trading session.

What interaction bash you deliberation the caller developments involving Silvergate Bank volition person connected the cryptocurrency marketplace arsenic a whole? Share your thoughts astir this taxable successful the comments conception below.

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