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Kraken Crypto Exchange Pulls Out Of Signature Bank For Financial Transactions

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According to a Bloomberg report, Kraken, the cryptocurrency exchange, is withdrawing from using Signature Bank for some major financial transactions. According…

Kraken Crypto Exchange Pulls Out Of Signature Bank For Financial Transactions

According to a Bloomberg report, Kraken, the cryptocurrency exchange, is withdrawing from using Signature Bank for some major financial transactions. According to an email sent by Bloomberg to customers on Wednesday, Kraken’s non-corporate customers will no longer be able to use Signature to deposit or withdraw dollars. The deposit will be gradually cancelled on March 15 and the withdrawal will end on March 30.

Bloomberg: Kraken quits using Signature Bank

Interpretation of the news:


Kraken, the renowned cryptocurrency exchange, is withdrawing from using Signature Bank for some of its significant financial transactions. According to a Bloomberg report released recently, Kraken’s non-corporate customers will no longer be able to utilize Signature Bank to deposit or withdraw dollars. The deposit will be gradually dissolved on March 15th, and the withdrawal will end on March 30th.

The latest development indicates that Kraken is cutting ties with a significant banking partner, which has been facilitating its dollar funding services since 2018. It’s not clear what prompted the firm to sever ties with Signature Bank, but industry experts believe it might relate to the bank’s recent decision to start working with the controversial stablecoin issuer, Tether.

The dissolution of the deal between Kraken and Signature Bank will undoubtedly affect the exchange’s U.S. customers in the short-term, as they will now have to find another banking service to facilitate dollar deposits and withdrawals. Many Kraken customers might find this transition cumbersome and may decide to move to other cryptocurrency exchanges with more convenient banking arrangements.

However, in the long term, the move could be a valuable strategic decision for the crypto exchange. It opens up new opportunities for Kraken to seek alternative banking partners and explore new ways to offer more competitive services. Since Signature Bank started cooperating with Tether, many market experts have held the opinion that the prominent New-York-based bank might face increased regulatory scrutiny from the US authorities.

In conclusion, Kraken’s loyalty to Signature Bank has ended, and the coming days will determine the impact the divorce will have on the cryptocurrency exchange’s operations. While the move might be disruptive in the short-term, it could open up new doors for Kraken’s business ventures in the long-run.

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