The cryptocurrency exchange Coinbase declared on March 2, 2023 that it is “no longer accepting or initiating payments to or from Silvergate Bank” in light of recent events. The announcement comes after the cryptocurrency bank postponed filing its annual 10-K with the Securities and Exchange Commission (SEC) and JPMorgan downgraded the stock of the business from “neutral” to “underweight.”
Given recent developments, shares of the company are anticipated to be very volatile as Coinbase cuts ties with Silvergate Bank
On Thursday, Coinbase made the announcement that it will no longer be accepting payments to or from the cryptocurrency-friendly bank Silvergate. Recently, Silvergate postponed filing its 10-K with the SEC for the 2022 fiscal year, citing the need for extra time to finish the submission. JPMorgan cut the stock of the company from “neutral” to “underweight” as a result of the delay.
On Thursday morning, Silvergate’s shares had lost 17.20% of their value over the previous five days before the opening bell on Wall Street. The notification was issued by Coinbase at 8:23 a.m. Eastern Time. The company tweeted, “With Coinbase, all client assets continue to be safe, accessible, and available. Coinbase is no longer accepting or starting payments to due to recent events and out of an excess of caution.
The business further stated that money handled at Coinbase is secure and continued:
De minimis business exposure exists between Coinbase and Silvergate
Ledgerx used to be a component of the FTX business, however it is currently one of the companies that is not associated with the FTX bankruptcy proceedings. Prior to the Coinbase announcement, CNBC noted that one of the most active stocks on Thursday’s trading day was anticipated to be Silvergate.