• LedgerX has reportedly severed ties with Silvergate Bank and is urging customers to use Signature Bank for domestic wire transfers.
• Signature Bank said it will reduce its exposure to the cryptocurrency industry at the end of 2022, but not scrap it entirely.
• LedgerX gained approval from the US Commodity Futures Trading Commission and was purchased by FTX US in October 2021.
LedgerX Cuts Ties With Silvergate
LedgerX – a cryptocurrency derivatives exchange and subsidiary of financial giant FTX – has reportedly cut ties with Silvergate Bank, instead opting to advise customers to receive wire transfers via New York-based Signature Bank.
Signature Bank To Reduce Crypto Exposure
Signature Bank told clients that it will reduce its exposure to the cryptocurrency industry at the end of 2022, but not scrap it entirely. It recently ceased conducting fiat-to-crypto transactions worth less than $100,000 for Binance earlier this year.
LedgerX Approved By CFTC
LedgerX was approved by the US Commodity Futures Trading Commission (CFTC) and purchased by FTX US in October 2021. The company had also sought to register with CFTC but withdrew its application due to a disagreement between two board members over the appropriate course of action.
FTX Collapse
The collapse of FTX caused a ripple effect across other entities under its umbrella, including LedgerX which remains one of few surviving operations related to FTX.
Conclusion
In conclusion, Ledgerx’s decision to replace Silvergate with Signature bank as their primary banking partner is likely beneficial for both parties involved given their respective positions within the crypto space today. While it remains unclear what impact this partnership may have on crypto adoption going forward, only time will tell how successful this new arrangement proves to be for Ledgerx and their clients