DC NFT Partner Palm Issues Update on Circles Transaction Bank Issues

Palm NFT Studio, a platform that creates and sells digital collectibles based on DC Comics characters and comics, has announced an “urgent update” on withdrawal requests for its users. According to Palm, the company’s payment service provider, Circle, has notified Palm NFT Studio that new withdrawal requests can no longer be fulfilled due to transaction banks passing into the hands of FDIC receivers. While the banks in question were not named in the Palm NFT Studio statement, Circle’s co-founder and CEO Jeremy Allaire made comments earlier this week about steps his company is taking to try to mitigate problems associated with Silicon Valley Bank and Signature Bank.

In this context, withdrawal is the mechanism used to withdraw money from your DC NFT Marketplace credit balance to your bank account. According to Palm’s statement from today, “Circle has communicated that it intends to clear its current backlog of already approved requests and satisfy the end consumer payouts that are queued. This means that if your payout request was already approved by the Palm NFT Studio Compliance Team, we expect your withdrawal to be honored by Circle. This only continues to affect Circle’s ability to support wire transfer withdrawals and has no impact on user funds.”

Palm NFT Studios’ partnership with DC Comics was announced in September 2021, along with some NFT drops released in conjunction with Fandome that year. Palm later began a weekly series of NFT drops, starting with Superman #1 (1939) October 27, 2021. The platform runs on the Palm Network, a blockchain network designed to create and trade NFTs compatible with Ethereum. The Palm Network claims fast transactions and high energy efficiency compared to other blockchains.

Circle, the cryptocurrency company behind the stablecoin USD Coin (USDC), offers payment services for businesses and institutions that use digital currencies. The company have faced new challenges following the collapse of two of its banking partners, Silicon Valley Bank and Signature Bank, the biggest bank failures since the 2008 financial crisis. Earlier this week, Circle CEO announced Jeremy Allaire“With the closure of Signature Bank announced tonight, we will not be able to process minting and redemption through SigNet, we will rely on settlement through BNY Mellon. Additionally, we will be hiring a new transaction banking partner with automated minting and redemption potentially as soon as tomorrow.”

The House Financial Services Committee is currently investigating the causes and consequences of the failures at Silicon Valley Bank and Signature Bank and any potential regulatory failure or negligence involved. In the meantime, Palm NFT Studio users await updates on the status of replacement withdrawal options.