Barclays Bank, one of the largest banking institutions in the world, will no longer be providing banking services to Coinbase UK.
CoinDesk first reported the details of the split, adding that the exchange has signed up with a replacement banking partner known as ClearBank.
Coinbase started banking with Barclays in 2018, in a deal which pioneered the relationship between British banks and cryptocurrency exchanges. The partnership connected the exchange to the U.K’s. Faster Payments Scheme (FPS)— a move that allowed users to make instant pound sterling deposits and withdrawals on Coinbase.
The exact reasons behind the split remain unknown, but it seems to have been in the works for some time. Late in July 2019, Coinbase announced that it would be removing FPS access for Coinbase UK customers, although Coinbase Pro customers weren’t affected. It didn’t provide any reasons at the time, but in retrospect, the move seems to have been the beginning of the end for its relationship with Barclays.
However, it is expected that by partnering with ClearBank, Coinbase will be able to get its FPS access reinstated.
Jimmy has been following the development of blockchain for several years, and he is optimistic about its potential to democratize the financial system.