Coinbase pauses support for Signature Bank’s Signet: Report

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More than a week after New York regulators shut down crypto-friendly signing banks, Coinbase has reportedly stopped supporting the institution’s Signet payment platform.

According to information on March 20 report According to The Wall Street Journal, Coinbase users will not be able to send funds using Signet outside bank hours until further notice. The crypto exchange was reportedly looking for another payment network provider and was awaiting the outcome of the situation with a signature.

The crypto-friendly bank is the third Domino to fail, following the failures of Silvergate Bank on March 8 and Silicon Valley Bank on March 10. Reports suggest that Signature had no problems with its solvency at the time of its closure on March 12.

The U.S. Federal Deposit Insurance Corporation has announced that it will sell bank deposits and loans, excluding approximately $4 billion in cryptocurrency deposits, to New York Community Bancorp’s Flagster Bank. The agency said it plans to offer crypto deposits “directly to customers” using digital banking accounts.

Coinbase, Celsius, and Paxos all had funds tied to signatures at the time the bank closed. Coinbase says it expects a “full recovery” in corporate assets of $240 million, Paxos reports to banks that he has $250 million, and Celsius has some We announced our exposure, but it wasn’t the exact amount.

Related: Has the FDIC Asked Signature Buyers to Stop All Crypto Business?

The U.S. House Financial Services Committee is scheduled to hold hearings on March 29 to investigate the failures of Silicon Valley Bank and Signature Bank. FDIC Chairman Martin Gruenberg and Fed Vice Chairman Michael Burr will testify.