• Coinbase – the leading American-based crypto exchange – is reportedly planning on setting up a new Bitcoin (BTC) and crypto trading firm overseas.
• The exchange lost banking partner Signature Bank due to its closure by New York regulators.
• Coinbase recently announced its partnership with Standard Chartered Bank for its customers in Singapore and published a blog post titled „Our 8-week international expansion drive in 6 countries“.
Coinbase Plans to Set Up Crypto Trading Firm Overseas
Coinbase, the leading American-based crypto exchange, is reportedly planning on setting up a new Bitcoin (BTC) and crypto trading firm overseas. This move comes days after penning its 8-week international expansion drive. The exchange aims to attract global clients with this platform even though it already has a presence in multiple countries including the UK, India, Singapore, UAE, and others.
Signature Bank Closure Affects Coinbase Banking Partners
The traditional banking system failure led to the crypto-market losing banking support in the United States. Specifically, Coinbase had $240 million in corporate cash stored in Signature Bank before its abrupt closure due to New York regulators‘ action. However, client funds remain unaffected as per assurance from the exchange that “all client cash at banks continues to be protected by FDIC pass-through insurance”. Moreover, Coinbase has other banking partners including US‘ largest bank – JPMorgan. Recently, it also partnered with Standard Chartered Bank for its customers in Singapore.
Coinbase’s International Expansion Drive
In addition to partnering with key financial sector tech & telco partners and engaging with leading governments abroad over 8 weeks period of time – coinbase plans to roll out multiple initiatives across 6 continents: South America, Europe, Africa/Middle East; Asia; Australia; and North America. This strategy is coined as “Go Broad Go Deep” & involves launching new products & services plus expanding presence beyond US borders.
Nature of Overseas Crypto Trading Platform Unclear
Details regarding nature of newly planned overseas trading platform remain unclear till date despite discussion between institutional clients & investment firms/market makers about this plan from Coinbase side. It will be interesting to see what shape does this platform take & how beneficial is it for global traders looking for an upgraded user experience & competitive rates for their transactions?
Overall it seems like financial crisis caused by traditional banking system failure will lead more exchanges towards non-US territories or platforms as they try to keep their operations going while protecting customer interest during such trying times!
• TON has been consolidating between $2.2 and $2.6 since the end of January, and its price action recently retested a key value area that could offer a strong rebound.
• If pullback retests its point of control (POC) of $2.3, bulls could get new buying opportunities with a target at the bearish order block of $2.6 for a potential 20% hike with a risk-to-reward (RR) ratio of 1:4.
• Santiment data reveals network accumulation, rising Mean Coin Age, positive weighted sentiment and an increase in daily active addresses – all indicators suggesting TON’s potential to pump towards the supply zone.
Since the end of January, The Open Network’s TON has been consolidating in the $2.2 – $2.6 range and its price action recently retested a key value area that could induce the market to a recovery.
At press time, TON had retested the demand zone (green) and the high-value node (HVN) of the Fixed Range Value Profile (FRVP). The FRPV’s point of control (POC), red line, of $2.3 had the highest traded volume and could offer a strong recovery if pullback retests it. Therefore, bulls could get new buying opportunities at $2.3 with a target at the bearish order block of $
• Coinbase announced that it would not accept payments from or to Silvergate.
• LedgerX reportedly ended its relationship with the crypto bank.
• Silvergate’s value plunged in after-hours trading and delayed its filing of annual report to the SEC.
Coinbase Drops Alliance With Silvergate
Coinbase, a U.S.-based crypto exchange, has announced that it will no longer be accepting or initiating payments to or from Silvergate, a crypto-focused bank, due to recent developments and out of an abundance of caution. Additionally, LedgerX, a derivatives trading platform, also reportedly ended its ties with the bank.
In its SEC filing yesterday, Silvergate stated that it was evaluating its ability to survive as a going concern and delayed its annual report filing until March 16th 2023. The bank also noted that it expects to record further losses related to the other-than-temporary impairment on the securities portfolio which could result in the company being less than well-capitalized.
Coinbase reassured customers that all funds are safe and accessible and will be using other banking partners for institutional clients going forward. The firm added that large dollar deposits are held in a U.S. government money market fund and they have de minimis corporate exposure to Silvergate.
Impact On Clients
The crypto exchange stated that it has taken proactive action so clients will experience no impact from this change. Furthermore, Coinbase reiterated that all client funds continue to be safe, accessible & available despite their alliance ending with Silvergate Bank
In light of these recent events surrounding silver gate Banks’ financial situation Coinbase has chosen to end their relationship with them through withdrawing support for payments towards or from them out of an abundance of caution for client safety .