Coinbase has been all over the headlines for numerous reasons. From being vocal during the increased scrutiny from the SEC, to halting BUSD trading and launching the Crypto435 program, the exchange’s presence was felt all across the cryptocurrency realm.
Brian Armstrong, the CEO of the exchange, also recently sat down with Bloomberg and spoke about the reason for delisting BUSD. Now, according to the recent announcement by the exchange on Twitter, Coinbase has conveyed major details regarding Silvergate.
Coinbase cites caution for the decision with Silvergate
The exchange mentioned in the tweet that, in the light of an abundance of caution and recent developments, Coinbase will no longer accept or initiate payments to or from Silvergate.
However, the exchange assured that all client funds are safe and accessible. The tweet also clarified that the exchange will facilitate client cash transactions with other banking partners. Armstrong’s exchange also highlighted that it has taken proactive action to ensure that no clients get affected by this decision.
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Coinbase also went ahead to explain how client cash is held at FDIC-insured US banks. “When a client has a large dollar balance, Coinbase stores their cash in a U.S. government money market fund to keep it safe & liquid.” The exchange also continued to ensure that it has the minimum exposure to Silvergate.