Key Points:
- Dapper Labs removed the ACH withdrawal option because its payment partner Circle has discontinued the service.
- Bank transfers and USDC are still an option for Dapper users.
- The service outage stems from the struggling and in danger of collapse of crypto-friendly bank Silvergate.
In a notice to customers, Dapper Labs, an NFT studio, has announced that it can no longer use Automated Clearing House (ACH) as its payments partner, Circle, has removed the functionality.
NFT studio Dapper Labs, known for creating popular blockchain-based games and digital collectibles, has recently reported that it can no longer process payments using Automated Clearing House (ACH). This decision comes after Circle, its payments partner, removed the functionality. This change may have an impact on the studio’s ability to receive payments and process transactions in a timely manner.
Dapper Labs has been at the forefront of the NFT (non-fungible token) market, with its most well-known creation being the NBA Top Shot platform, which allows users to buy, sell, and trade digital collectibles featuring iconic moments from NBA games. The removal of ACH functionality by Circle could potentially have an impact on the ability of Dapper Labs to continue operating smoothly and efficiently.
Last week Silvergate abruptly shut down the Silvergate Exchange Network, a payment service used by major cryptocurrency institutions. The crypto-friendly bank was found to have many regulatory loopholes and has faced scrutiny from regulatory authorities since the collapse of FTX.
This is understood to be the main reason Circle stopped ACH services. Additionally, the majority of Silvergate customers have parted with the struggling bank and stopped using their ACH services, including Coinbase, Circle, Paxos, and Crypto.com, among others.
Reportedly after the ACH service was discontinued, wire transfers and USDC remained an option for Dapper users. According to Dapper, it would still enable withdrawals made using USDC and wire transfers, with a $9 fee.
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