Coinbase Global Inc. announced on Monday that it would no longer support Signet, the real-time payments network of failed Signature Bank.
According to a report by the Wall Street Journal, Coinbase clients who used Signet for U.S. dollar deposits or withdrawals would not be able to send funds outside of banking hours. Coinbase said it was searching for a new technology partner to replace Signet.
However, Coinbase users can still make crypto deposits, withdrawals, and conversions from stablecoin USDC to U.S. dollars 24/7 on Coinbase Exchange.
This move comes after New York State regulators shut down Signature Bank last weekend and transferred its assets to a new entity known as Signature Bridge Bank, run by the Federal Deposit Insurance Corporation (FDIC). It is still unclear whether Signet, which is in the receivership of the FDIC, will continue to operate or be shut down.
A Coinbase spokesperson stated that while the decision to stop supporting Signet was not ideal, it showed a need for an updated financial system. The spokesperson added that Coinbase was actively looking for a new technology partner to ensure smooth payments for its clients.
