A banking romance that lasted for a short time has finally ended, Barclays is no longer supporting Coinbase, a statement has revealed.
After access to a faster Payment scheme (FPS) was withdrawn suddenly following the split between Barclays and Coinbase, UK customers were left in a limbo, not knowing what to do next, with the sudden obstruction that had hit them. However, Coinbase has already found a replacement, in a startup, but traders are yet to absorb all this and are now in complete disarray, not knowing what to do next as they have to wait until the new partnership takes shape.
Throughout this relationship, Coinbase was enjoying the services of a giant in the banking industry, enabling users to carry out transactions in a matter of minutes, in a process called, the quick payment scheme (FPS). When the relationship ended abruptly, customers were left stranded as some of their transactions were pending, and others could not go through while others were in distress as their plans to use the service became void. The end of the relationship meant longer hours to process payments.
However, the situation is poised to end very soon, as Coinbase has found a new partner in the UK, which is Clearbank, a startup. The bank isn’t very synonymous as Barclays but has shown great potential in the near past for a bank that has been in the market for a short time. Nevertheless, the bank has the capabilities to restore the faster payment services that Coinbase offered its UK customers via Barclays.
Over the recent past, banks are steering clear of all crypto exchange firms, in a bid to protect themselves from ensuing scandals that could be damaging to state the least.
Earlier last year, when the news hit the waves of the partnership between Coinbase and Barclays, people couldn’t be happier, especially crypto traders. The deal received a green light, as the regulators awarded Coinbase with a license allowing it to trade in the UK. Coinbase became the first exchange for collaborating with a big bank in the UK, and further to receive the nod to provide faster payment schemes in the UK via third party banks.
The exact reason for the invalidation of the contract is still a mystery, but speculation shows that Barclays was a bit skeptical of the traders and wanted to get rid of them before things got out of hand.