According to a report in the Wall Street Journal, Coinbase Global (COIN) informed its customers on Monday that it will no longer be embracing Signet, a blockchain-based system associated with the defunct Signature Bank.
The reports further claimed that Coinbase customers who previously utilized Signet for U.S. dollar deposits or withdrawals would no longer be able to transmit cash outside of the typical banking hours. Nevertheless, Coinbase has said that it is seeking a new technology partner.
A Coinbase representative informed the Journal that clients would still have round-the-clock access to the service, meaning they could conduct cryptocurrency deposits, withdrawals, and swaps from stablecoin USDC to USD on the Coinbase Exchange.
The spokesperson added that the situation is less than ideal but highlights the need for a modernized monetary system.
Signet Network’s fate remains a mystery
The destiny of Signet has been unknown since Signature Bank was closed down by New York State authorities the previous weekend, and its assets moved to a new business administered by the FDIC known as Signature Bridge Bank. According to sources, Signet is still active, although some users have reported problems with the service.
In a statement, an FDIC representative quipped that Signet remains under its administration as no recommendations have been rendered about it at this time. Coinbase could not respond promptly when a request for comment was made.