Coinbase No Longer Supporting Signature Bank’s Signet Network: WSJ
- Coinbase Global (COIN) told clients on Monday that it is no longer supporting the real-time payments network of failed Signature Bank, according to a Wall Street Journal report.
- The fate of Signet has been unclear since Signature Bank was shut down by New York State regulators last weekend and its assets transferred to a new entity run by the Federal Deposit Insurance Corporation known as Signature Bridge Bank.
- Coinbase users who used Signet for U.S. dollar deposits or withdrawals won’t be able to send funds outside of the usual banking hours, but Coinbase said it is looking for a new technology partner.
What Happened?
Coinbase Global (COIN) told clients on Monday that it is no longer supporting the real-time payments network of failed Signature Bank, according to a Wall Street Journal report. The fate of Signet has been unclear since Signature Bank was shut down by New York State regulators last weekend and its assets transferred to a new entity run by the Federal Deposit Insurance Corporation known as Signature Bridge Bank.
Impact On Coinbase Users
Coinbase users who used Signet for U.S. dollar deposits or withdrawals won’t be able to send funds outside of the usual banking hours, but Coinbase said it is looking for a new technology partner. However, customers would still be able to make crypto deposits, withdrawals and conversions from stablecoin USDC to U.S. dollars 24/7 on Coinbase Exchange, according to a spokesperson for Coinbase Exchange.
What Did Coinbase Say?
A spokeswoman from Coinbase Exchange said “while not ideal, this shows a need for an updated financial system.” This suggests that the exchange believes that current banking services are outdated and in need of an upgrade in order to meet customer needs more effectively in today’s digital age.
Conclusion
Signature Bank’s closure has caused confusion over whether or not its payment network Signet will continue operating–but what is clear is that Coinbase customers will no longer be able support their USD transactions through this platform anymore due to this change in circumstances; however they will still have access 24/7 through stablecoin USDC on the exchanges platform itself instead.