{"id":558991,"date":"2023-03-03T14:20:44","date_gmt":"2023-03-03T11:20:44","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/coinbase-cutting-ties-with-silvergate-forces-crypto-hedge-fund-to-find-a-new-bank\/"},"modified":"2023-03-03T14:20:44","modified_gmt":"2023-03-03T11:20:44","slug":"coinbase-cutting-ties-with-silvergate-forces-crypto-hedge-fund-to-find-a-new-bank","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/coinbase-cutting-ties-with-silvergate-forces-crypto-hedge-fund-to-find-a-new-bank\/","title":{"rendered":"# Coinbase cutting ties with Silvergate forces crypto hedge fund to find a new bank"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a40b45c19a61\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a40b45c19a61\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/coinbase-cutting-ties-with-silvergate-forces-crypto-hedge-fund-to-find-a-new-bank\/#%E2%80%9D_Coinbase_cutting_ties_with_Silvergate_forces_crypto_hedge_fund_to_find_a_new_bank_%E2%80%9C\" >&#8221; Coinbase cutting ties with Silvergate forces crypto hedge fund to find a new bank &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Coinbase_cutting_ties_with_Silvergate_forces_crypto_hedge_fund_to_find_a_new_bank_%E2%80%9C\"><\/span>&#8221; Coinbase cutting ties with Silvergate forces crypto hedge fund to find a new bank &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDMvZmYzNjM0N2MtODJiMS00OTAxLThmZjItNDlkZjQxNTkzYTljLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-48054ca8>The popular fintech bank Silvergate Bank lost five crypto partners on March 2, owing to a slew of investigations and lawsuits against it. <\/p>\n<p>Coinbase, Paxos, Gemini, BitStamp and Galaxy Digital were some of the most notable crypto firms that were using Silvergate as their banking partner. However, the termination of service by Coinbase has also forced a crypto hedge fund to look for an alternate banking partner.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Today Silvergate has lost<\/p>\n<p>Coinbase<br \/>Circle<br \/>Paxos<br \/>Galaxy<br \/>CBOE<\/p>\n<p>RIP <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/XlexB5u2wD\">https:\/\/t.co\/XlexB5u2wD<\/a><\/p>\n<p>\u2014 db (@tier10k) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/tier10k\/status\/1631338664180555804?ref_src=twsrc%5Etfw\">March 2, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>On March 3, a crypto hedge fund called Digital Asset Capital Management (DACM) with assets worth over $400 million announced they are looking for a new banking partner in Switzerland post Silvergate chaos. DACM used Silvergate\u2019s real-time network to move funds to and from Coinbase Global Inc.\u2019s platform.<\/p>\n<p>DACM chief in an <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-03-03\/crypto-hedge-fund-looks-to-swiss-banks-after-silvergate-exodus\">interview <\/a>with Bloomberg said that even though there are certain banks in the U.S. that can handle crypto transactions, they are not crypto-focused as Silvergate. He added that finding a new partner could take some time and they are \u201cspeaking to some Swiss banks.\u201d<\/p>\n<p>Switzerland was one of the first countries to regulate and offer banking licenses to crypto banks. SEBA Bank AG (formerly SEBA Crypto AG) is a fully-regulated institution, having secured a banking and securities dealer license from the Swiss Financial Market Supervisory Authority (FINMA) in August 2019.  <\/p>\n<p>Silvergate was popular with crypto companies because of its instant and real-time bank transfer services. Thus, it might take longer to move funds in absence of such facilities. Currently, in the U.S., Signature bank seems to be the next popular fintech bank of choice for crypto companies. Coinbase had already shifted its Prime customer&#8217;s banking transfers to the Signature bank.<\/p>\n<p><strong><em>Related:<\/em><\/strong><strong><em> Binance banking problems highlight a divide between crypto firms and banks<\/em><\/strong><\/p>\n<p>The Signature Bank might be the next best choice for crypto firms at the moment, but the question is for how long? Earlier in December 2022, Signature Bank announced its intention to withdraw up to $10 billion in deposits from clients who hold digital assets, starting a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> exodus from the cryptocurrency sector. The bank had already severed ties with Binance, discontinuing its SWIFT banking services for the crypto exchange.<\/p>\n<p>While crypto companies have always found it difficult to find a banking partner due to the absence of clear regulations around the market, the Silvergate saga has \u201craised the difficulty level\u201d of transferring cash to crypto exchanges. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/coinbase-cutting-ties-with-silvergate-forces-crypto-hedge-fund-to-find-a-new-bank\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Coinbase cutting ties with Silvergate forces crypto hedge fund to find a new bank &#8220; The popular fintech bank Silvergate Bank lost five crypto partners on March 2, owing to a slew of investigations and lawsuits against it. Coinbase, Paxos, Gemini, BitStamp and Galaxy Digital were some of the most notable crypto firms that&#8230;<\/p>\n","protected":false},"author":1,"featured_media":558992,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/ff36347c-82b1-4901-8ff2-49df41593a9c.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[86524,74894,75936,74956,74863,74864,76605,70934],"class_list":["post-558991","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-asset-management","tag-blockchain","tag-circle","tag-coinbase","tag-cryptocurrencies","tag-gemini","tag-paxos","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/558991","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=558991"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/558991\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/558992"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=558991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=558991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=558991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}