Kraken, the popular San Francisco-based cryptocurrency exchange, has announced that it will no longer be supporting automated clearing house (ACH) deposits and withdrawals through Silvergate Bank as of March 27. This news comes after Silvergate Bank announced its voluntary liquidation earlier this month, leaving Kraken with no choice but to cut ties with the bank.
Kraken has been facilitating ACH deposits and withdrawals via Silvergate Bank for its U.S. customers since 2019. However, the recent banking crisis in the U.S. has hit many crypto firms hard, with the abrupt collapse of Silvergate, Signature Bank, and Silicon Valley Bank coming as a massive blow to web3 projects that have alliances with them.
Kraken has assured its users that other funding methods, such as MVB bank for Fedwire deposits and withdrawals, will continue to function on its platform. The team is also working hard to reinstate ACH funding via another banking partner as soon as possible.
This news follows Kraken’s suspension of its crypto staking service last February due to a crackdown by the U.S. Securities and Exchange Commission (SEC). Coinbase, another popular cryptocurrency exchange, recently relinquished support for Signature Bank’s Signet payment ramp until further notice after receiving a Wells notice from the SEC on March 22.
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. This move provides an alternative for crypto-focused firms in the U.S. who are now searching for new banking partners abroad.
As the crypto industry continues to grow, it is important for exchanges and other crypto-focused firms to have reliable banking partners to facilitate transactions. The recent banking crisis in the U.S. has highlighted the need for the industry to explore alternative banking solutions and partnerships to ensure its continued growth and success.