Coinbase Finds Alternative Solution to Bank Crisis in the USA
Crypto exchange Coinbase has partnered with Standard Chartered in Singapore to offer its users the option to move funds between the lender and the cryptocurrency exchange at a time when banking options are scarce for digital token service providers. Many crypto exchanges are scrambling for new banking partnerships. Coinbase said today that under the agreement, Coinbase users will be able to transfer Singapore dollars to the platform for free through any local bank in the country.
Hassan Ahmed, Coinbase Singapore country director, said in an interview that Standard Chartered will offer this link for transferring funds. After the financial turmoil last week, the timing of finding a new banking partner was remarkable as many crypto firms, asset managers and hedge funds in the US struggled to replace such links. “I would definitely say that the background is somewhat interesting and contrasting, especially for banking integration,” Ahmed said. He said talks were ongoing with Standard Chartered before the collapse of three U.S. banks last week.
Silvergate Capital Corp. announced last week that it would close, followed by the failures of Silicon Valley Bank and then Signature Bank, spurring US officials to offer new support to protect deposits. The loss of Silvergate and Signature has been particularly heavy for digital assets as they operate real-time, seven-day-a-week payment networks for the crypto industry and facilitate the flow of money into the industry. Ankur Kanwar, head of cash products at Standard Chartered Singapore and ASEAN, said that Coinbase’s partnership with Standard Chartered will allow users to make and receive payments in real time, as well as allow the exchange to automatically reconcile user accounts.
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