Coinbase Global Inc. has formed a strategic partnership with Standard Chartered in Singapore to offer its clientele a seamless solution for transferring funds between any financial institution and the cryptocurrency exchange .
This collaboration comes at a crucial time when traditional banking services for digital asset service providers are becoming increasingly scarce due to the growing regulatory pressure and the recent collapse of crypto-friendly banks like Silicon Valley Bank (SVB) and Signature Bank in the US.
Coinbase Finds New Banking Partner in Singapore
According to the Coinbase statement published on Wednesday, Coinbase customers may use Singapore dollars for transfers via local banking institutions operating in the Asian country without additional charges.
According to Ankur Kanwar, the Head of Cash Products for Singapore and ASEAN at Standard Chartered, the collaboration between Coinbase and the bank will empower users to conduct real-time transactions while enabling automatic reconciliation of user accounts.
In an interview with Bloomberg, Hassan Ahmed, the Country Director for Coinbase Singapore, mentioned that Standard Chartered will provide the facility to on- and off-ramp their funds. Ahmed highlighted that this scenario for banking integration contrasts with the current uncertainty of the markets. However, he further revealed that the negotiations with Standard Chartered had been underway prior to the recent downfall of three US banks in the past week.
Coinbase's finding of a new banking partner is worth highlighting, especially when several major cryptocurrency companies are struggling to find similar partners and replacements in the US since the turmoil in the local banking sector began last week.
Operations were first halted by Silvergate Capital Corp. and then followed by SVB and Signature Bank. The cessation of operations by those mentioned above is painful for the cryptocurrency industry, as they provided 24/7 service, ensuring the free flow of funds into and out of this booming sector.
Last year, Coinbase received in-principal approval from the Monetary Authority of Singapore (MAS), thus gaining the status of a Major Payments Institution under the local Payment Services Act. MAS' digital payment token license is considered to be one of the most stringent approvals for cryptocurrency companies.
Hello Singapore 🇸🇬
— Coinbase (@coinbase) October 11, 2022
Excited to announce we have received an In-Principle Approval as a Major Payment Institution in the Lion City! This is an important step in our mission of being the most trusted crypto platform in Asia Pacific.https://t.co/pc2pkTl7yG
After Signature Bank Collapsed, Coinbase Discloses Massive Exposure
Coinbase is one of those cryptocurrency service providers that directly felt the adverse effects of the collapse of US banks last week. The exchange has revealed a $240 million deposit with Signature Bank. However, the exposure did not affect Coinbase's operations, as the exchange currently processes transactions through other banking partners.
All client cash at banks continues to be protected by FDIC pass-through insurance. Due to FDIC's hold on Signature’s transactions, we’re currently facilitating all client cash transactions with other banking partners.
— Coinbase (@coinbase) March 12, 2023
"Despite the turbulence we have seen in the traditional banking sector recently, Coinbase continues to operate as usual. At Coinbase, all client funds continue to be safe and accessible, including USDC conversions which will resume on Monday," Coinbase added.
Moreover, panic was evident for a while on Coinbase (NASDAQ:COIN) shares, which lost more than 17% last week. However, they are recovering most of their losses this week and are back above $62.
At the end of February, the exchange published its fourth quarter results, reporting a loss of $557 million and a 75% decline in net revenue to $605 million compared to last year. However, quarterly revenue exceeded analysts' expectations of $588 million.
