Coinbase has discontinued support for Signet, a service once offered by the failed Signature Bank, according to a report from the Wall Street Journal on March 20.
Coinbase partnered with Signature in October 2022. Coinbase used Signet to perform U.S. dollar transactions with exchanges and institutional clients instantly and around the clock.
Signature only offered its Signet network to commercial clients (including crypto exchanges). As such, Coinbase is now looking for a new network to fill the same role, according to the latest WSJ report. A spokesperson said that the current situation is “not ideal” and added that the situation “shows a need for an updated financial system.”
The spokesperson noted that customers can currently transfer funds to and from Coinbase via traditional payment methods, through cryptocurrency deposits and withdrawals, and through conversions between the USDC stablecoin and the U.S. dollar.
Though Signature was shut down by regulators on March 12, its Signet network remains operational as of March 20, according to the Wall Street Journal.
The FDIC announced that it sold Signature Bank to Flagstar Bank on March 19. Though Flagstar has not confirmed that it will shut down Signet, the company will halt crypto-related activity — which may spell the end of the blockchain-based Signet network.
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