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The largest US cryptocurrency exchange announced the cessation of all financial transactions through accounts opened with Silvergate Bank.
Coinbase stated that in order to providecustomer safety and minimizing possible negative consequences, the exchange administration decided to stop financial transactions through Silvergate Bank, which serves many crypto-companies.
"In light of recent events and considerationsOut of an abundance of caution, Coinbase no longer accepts or initiates payments to Silvergate. The exchange will facilitate monetary transactions of institutional clients with our other banking partners,” the company said in a statement.
Coinbase responded almost immediatelyafter Silvergate announced a delay in filing its annual financial report and possible financial insolvency due to a sharp decline in capitalization.
The exchange assured users that it has"minimal corporate interaction with Silvergate" and that it holds client funds in government money market funds and FDIC-insured U.S. banks.
Earlier, Coinbase CEO Brian Armstrong spoke
on Bloomberg TV, where he touched on several issues, including regulation and a possible ban on staking in the United States. The head of the exchange emphasized that he intends to protect this class of crypto assets.
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