Allgemein

Kraken Cuts Ties with Silvergate, Crypto Firms Hit Hard

• Kraken crypto exchange has informed customers that they will no longer be able to use ACH Silvergate and Plaid deposits and withdrawals as of March 27th.
• This decision was prompted by the voluntary liquidation of Silvergate earlier this month.
• Other crypto-focused firms based in the U.S. have also been affected, such as Coinbase and Xapo Bank, who have had to turn to other banking partners abroad.

Kraken Cuts Ties With Silvergate

Kraken crypto exchange has reportedly informed its customers that as of March 27th, automated clearing house (ACH) deposits and withdrawals through its banking partner, Silvergate, will no longer be supported. The team has made it clear that from the said date, the deposit option through Plaid and the withdrawal option via ACH Silvergate, will no longer be visible on its platform. However, other funding methods such as MVB bank for Fedwire deposits and withdrawals will continue to function.

U.S Banking Crisis Hits Crypto Firms Hard

The San Francisco-based bitcoin (BTC) trading venue has facilitated its U.S customers’ ACH deposits and withdrawals via Silvergate since 2019. However, the bank’s voluntary liquidation earlier this month has made it impossible for Kraken to continue using its service. U.S banking crisis hit crypto firms hard Kraken says its team is working hard to reinstate ACH funding via another banking partner as soon as possible..

Silvergate Collapse Affects Web3 Projects

The abrupt collapse of Silvergate, Signature Bank and Silicon Valley Bank have come as a massive blow to web3 projects that have alliances with them. It is reported that a good number of crypto-focused firms based in the U.S are now in search of new banking partners abroad. As recently reported by crypto news citing WSJ, Brian Armstrong’s Coinbase crypto exchange recently relinquished support for Signature Bank’s Signet payment ramp until further notice..

Circle & Xapo Partner To Offer USDC Deposits & Withdrawals

In related news Xapo Bank , a regulated Gibraltar-based bank has partnered with Circle to enable cost efficient round the clock USDC depositsand withdrawals .

Conclusion

It appears that many cryptocurrency firms in the United States are struggling due to recent changes in regulation which require them to find new banking partners or risk being shut down entirely