“Sayonara” Silvergate Bank: Coinbase Drops US Dollar Banking Partner

1. Coinbase to use Signature Bank for institutional cash transactions
2. Silvergate Bank stocks drop 40% during pre-market trading
3. Delay in filing 10-K report raises concerns about Silvergate Bank’s insolvency

As a result of an ongoing investigation, the cryptocurrency exchange Coinbase has terminated its partnership with Silvergate Bank as its U.S. dollar banking partner.

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The cryptocurrency exchange will facilitate institutional client cash transactions with its other banking partner, Signature Bank, for its prime customers. Silvergate Bank’s Stocks were already under pressure from a delayed 10-K filing, which fell an additional 40% during pre-market trading. In light of the insolvency concern, JP Morgan downgraded Silvergate Capital to underweight from neutral.

In the United States, a 10-K report is a document required by the SEC that gives an overview of a company’s financial condition and business operations. It is estimated that the cryptocurrency bank will need two additional weeks to complete the fiscal year 2022 report. The decision has no bearing on payment instructions in pounds or euros.

In other news, the Ethereum network has introduced a new standard known as ERC-4337, which is now available on networks that are compatible. Through the creation of Smart Accounts, this new standard aims to make transactions on the blockchain more flexible and user-friendly. With ERC-4337, users can conduct transactions without requiring complicated seed phrases or wallet configurations.

This new standard eliminates the need for users to remember complex seed phrases, which are frequently required for secure wallet access. Smart Accounts allow users to create and manage multiple wallets from a single account, as well as access and use them without the need for technical knowledge.

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• Bitfy Joins Brazil’s Longest-running Bank for Crypto Taxation