Coinbase, a well-known cryptocurrency exchange, recently announced that it has ceased supporting Signet, a digital payment platform owned by Signature Bank. This decision was made after US regulators shut down Signature Bank last week.
Coinbase is now actively seeking a new technology provider, while also hoping for more clarity from Signet, which had previously allowed for real-time transactions between cryptocurrencies and fiat currencies.
In related news, the US Federal Deposit Insurance Corporation (FDIC) recently sold Signature Bank, but without its cryptocurrency division.
As of March 20, Flagstar Bank will now be operating 40 former Signature branches, while Signature Bank savers who were not involved in the digital banking business will automatically become savers of New York Community Bancorp’s Flagstar Bank.
It is worth noting that Signature Bank was a multidirectional bank, and cryptocurrencies were not its main focus, unlike Silvergate.
Signature Bank only began dealing with cryptocurrencies at the end of 2018, and they accounted for approximately 23% of all deposits, with plans to reduce their share to 15%. At the time of the shutdown, Signature Bank had over $110 billion in assets.