• Kraken crypto exchange has informed its customers that ACH deposits and withdrawals via Silvergate and Plaid will no longer be available as of March 27.
• The San Francisco-based bitcoin (BTC) trading venue had facilitated U.S. customers‘ ACH deposits and withdrawals via Silvergate since 2019.
• Other crypto firms like Coinbase and Xapo Bank are also facing difficulties due to the collapse of Silvergate, Signature Bank, and Silicon Valley Bank in the US banking crisis.
Kraken Cuts Ties with Silvergate
Kraken crypto exchange has recently informed its customers that automated clearing house (ACH) deposits and withdrawals through its banking partner, Silvergate, will no longer be supported from March 27 onwards. The team has made it clear that from the said date, the deposit option through Plaid and the withdrawal option via ACH Silvergate, will no longer be visible on its platform.
Silvergate’s Voluntary Liquidation
The San Francisco-based bitcoin (BTC) trading venue had facilitated U.S. customers‘ ACH deposits and withdrawals via Silvergate since 2019; however, due to the bank’s voluntary liquidation earlier this month it is now impossible for Kraken to continue using their service.
US Banking Crisis Hits Crypto Firms Hard
Other crypto firms such as Coinbase have also been hit by this US banking crisis due to their alliances with banks such as Signature Bank and Silicon Valley Bank which have both collapsed abruptly; a good number of crypto-focused firms based in the U.S are now searching for new banking partners abroad in order to restore their services properly once again.
Xapo Bank Joins Forces with Circle
In related news, Xapo Bank which is a regulated Gibraltar-based bank has partnered with Circle in order to enable cost-efficient round-the-clock USDC deposits and withdrawals for its customers during this troubling period for many cryptocurrency companies across America.
MVB Bank Continuing To Function
Kraken stresses that other funding methods such as MVB bank for Fedwire deposits and withdrawals will continue to function normally throughout this period; they are working hard to reinstate ACH funding via another banking partner as soon as possible too which should help solve their current issues regarding payments quickly going forward in time.