Signature Bank has not confirmed that LedgerX uses its services

It is reported that both Yahoo and Bloomberg disclosed that LedgerX has chosen to use Signature Bank as its telegraphic transfer fund receiver in order to keep a distance from Silvergate Bank, but Signature has not confirmed this news so far, The financial institution said in a statement: “Although we can’t comment on specific customers, we are still providing digital asset customers with the business of holding some US dollar deposits.” Due to the difficulties of Silvergate Bank, many encryption companies have said that they will no longer use their services and turn to Signature Bank, including Coinbase. （cryptoslate）

Interpretation of this information:

The recent news report about LedgerX, Yahoo, and Bloomberg reveals that LedgerX has made a strategic move to distance itself from Silvergate Bank. According to the sources, LedgerX chose to use Signature Bank as its telegraphic transfer fund receiver instead, which has not been confirmed by Signature Bank yet. Although Signature Bank did not comment on this specific news, it stated that it continues to provide digital asset customers with the business of holding some US dollar deposits.

The reason for LedgerX’s decision to move away from Silvergate Bank is the difficulties faced by the latter. Many encryption companies, including Coinbase, have expressed their reluctance to use Silvergate Bank’s services due to these issues. This has raised concerns about the stability of Silvergate Bank’s position in the digital asset industry.

LedgerX’s move to Signature Bank is therefore perceived as a strategic one. The decision to use a different bank to handle telegraphic fund transfers shows that LedgerX is focused on ensuring that its operations continue smoothly without any unnecessary disruptions or complications. This action could be an indication of the company’s proactivity and forward-thinking approach to managing its operations amidst a time of transition and instability in the financial sector.

Furthermore, the move to Signature Bank could lead to the establishment of stronger ties between the two entities. Signature Bank has demonstrated its commitment to providing digital asset customers with reliable services. This move is, therefore, likely to enhance the reputation of Signature Bank and position it as a reliable financial institution for digital asset companies. It could also lead to an increase in the number of companies seeking Signature Bank’s services to handle their telegraphic fund transfers.

In conclusion, this news report highlights the evolving nature of the digital asset industry and the importance of managing risks and disruptions effectively. LedgerX’s decision to use Signature Bank reflects the need for digital asset companies to remain agile and strategic in their operations in the face of market uncertainties. It is also an indication of the increasing importance of financial institutions in providing reliable services to digital asset companies.