On Monday, Coinbase Global (COIN) announced to its clients that it would no longer support Signet, the real-time payments network of Signature Bank that was recently shut down by New York State regulators.
According to a report by the Wall Street Journal, Coinbase users who used Signet for U.S. dollar deposits or withdrawals won’t be able to send funds outside of the usual banking hours, but Coinbase said it was looking for a new technology partner.
The fate of Signet has been uncertain since Signature Bank was shut down by New York State regulators last weekend, and its assets transferred to a new entity run by the Federal Deposit Insurance Corporation (FDIC) known as Signature Bridge Bank. A spokesperson for Coinbase said, “While not ideal, this shows a need for an updated financial system.”
Coinbase customers would still be able to make crypto deposits, withdrawals, and conversions from stablecoin USDC to U.S. dollars 24/7 on Coinbase Exchange.
Despite the uncertainty, Coinbase’s move to look for a new technology partner signals its commitment to providing reliable payment services to its clients.
