Coinbase cutting ties with Silvergate forces crypto hedge fund to find a new bank

Coinbase cutting ties with Silvergate forces crypto hedge fund to find a new bank

Banking Coinbase
July 2, 2022 by Admin
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How will Coinbase cutting ties with Silvergate impact the cryptocurrency market? Coinbase cutting ties with Silvergate forces crypto hedge fund to find a new bank Introduction Coinbase, one of the world’s largest cryptocurrency exchanges, recently announced that it will be cutting its ties with Silvergate Bank. This decision has caused great concern for many crypto
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How will Coinbase cutting ties with Silvergate impact the cryptocurrency market?

Coinbase cutting ties with Silvergate forces crypto hedge fund to find a new bank

Introduction

Coinbase, one of the world’s largest cryptocurrency exchanges, recently announced that it will be cutting its ties with Silvergate Bank. This decision has caused great concern for many crypto investors, particularly those who have invested in crypto hedge funds that hold their assets at Silvergate Bank. This has led to many hedge funds having to find new banks to store their funds.

Coinbase and Silvergate Bank Relationship

Coinbase has been using Silvergate Bank as its primary banking partner since 2018. The bank has provided Coinbase with access to the Federal Reserve’s payment network, which has helped to facilitate large transactions. However, Coinbase recently announced that it will be ending its relationship with Silvergate Bank.

Reason for Coinbase Ending its Relationship with Silvergate Bank

There has been no official statement from Coinbase as to why it has ended its relationship with Silvergate Bank. However, reports have suggested that the move was made after Silvergate Bank started to compete with Coinbase in the crypto space. Silvergate Bank launched its own cryptocurrency exchange last year, which may have led to a conflict of interest between the two companies.

Impact on Crypto Hedge Funds

Many crypto hedge funds have stored their assets at Silvergate Bank, as the bank has become a popular choice for managing crypto assets. However, with Coinbase cutting its ties with the bank, many of these hedge funds have been forced to find new banks to store their assets.

Conclusion

The decision by Coinbase to cut its ties with Silvergate Bank has caused great concern for many crypto investors, particularly those who have invested in crypto hedge funds. This move has meant that many hedge funds have had to find new banks to store their assets. It remains to be seen what impact this will have on the crypto industry as a whole, but it is clear that it has caused disruption for many investors.