Coinbase has shifted from using Silvergate as its banking partner for handling dollar payments for its prime customers, and instead opted to use Signature Bank due to concerns about the solvency of Silvergate. This change was made as a precautionary measure, and Coinbase stated that it had limited exposure to Silvergate.
On Wednesday, Silvergate announced that it would be delaying its annual report, causing its stock price to drop 10% after hours, and leading to concerns about its ability to remain operational. As a result of this news and Coinbase's decision, Silvergate's shares fell 45% in pre-market trading, while Signature's shares also dropped by 9.4%. However, it's important to note that this change only affects dollar payments and not payments in pounds or euros.
The switch to Signature Bank is effective immediately.