Kraken joins list of crypto firms cutting ties with troubled banks

Kraken crypto exchange has reportedly informed its customers that as of March 27, deposits and withdrawals via ACH Silvergate and Plaid will no longer be available. 

Kraken cuts ties with Silvergate 

Jesse Powell’s Kraken crypto exchange has reportedly informed its users that as of March 27, automated clearing house (ACH) deposits and withdrawals through its banking partner, Silvergate, will no longer be supported.

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. However, other funding methods, such as MVB bank for Fedwire deposits and withdrawals will continue to function.

The San Francisco-based bitcoin (BTC) trading venue has facilitated its U.S. customers’ ACH deposits and withdrawals via Silvergate since 2019. However, the bank’s voluntary liquidation earlier this month has made it impossible for Kraken to continue using its service.

U.S. banking crisis hit crypto firms hard 

Kraken, which suspended its crypto staking service last Feb., due to a crackdown by the U.S. securities and exchange commission (SEC), says its team is working hard to reinstate ACH funding via another banking partner as soon as possible.

The abrupt collapse of Silvergate, Signature Bank, and Silicon Valley Bank has come as a massive blow to web3 projects that have alliances with them. It is reported that a good number of crypto-focused firms based in the U.S. are now in search of new banking partners abroad.

As recently reported by crypto.news citing WSJ, Brian Armstrong’s Coinbase crypto exchange, which received a Wells notice from the SEC on March 22, recently relinquished support for Signature Bank’s Signet payment ramp until further notice.

In related news, Xapo Bank, a regulated Gibraltar-based bank, has partnered with Circle to enable cost-efficient, round-the-clock USDC deposits, and withdrawals.