• Silvergate Capital Corporation has halted its crypto payment services, called the Silvergate Exchange Network.
• The decision to suspend the crypto payment services was made due to risk-based factors, and all other deposit-related services remain operational.
• Silvergate’s losses have been substantial in recent quarters and it has also had to sell additional debt securities in order to repay its financial obligations.
Silvergate Bank Closes Crypto Payments Network
Silvergate Capital Corporation has announced that it will be halting its crypto payment services, called the Silvergate Exchange Network. This move was a risk-based decision and all other deposit-related services remain operational.
Damage Already Done To Crypto Market?
A CIO of a crypto asset manager believes that the damage is already likely done on the broader market due to this news. Distressed, Silvergate Capital Corporation once one of the most preferred destinations for crypto businesses has faced considerable challenges in recent months leading up to this decision.
Losses For Silvergate
In addition, the US bankruptcy court ordered Silvergate to release $9.9 million to crypto lender BlockFi shortly after announcing these issues with their operations. It was recently disclosed that they sold additional debt securities in an attempt to repay their financial obligations as well as recording $886 million losses in the most recent quarter from selling underwater securities which led to a 68 percent fall in its crypto related deposits from $11.9 billion down significantly to $3.8 billion quarter on quarter prior to these events occurring.
Cutting Relationships With SilverGate
Coinbase Global Inc COIN Galaxy Digital Holdings Ltd, Paxos Trust, Bitstamp, and Gemini have already suspended their relationship with the bank following these events taking place and this could potentially lead more companies cutting ties with them too over time if things don’t improve soon enough for them both financially and operationally speaking overall too going forward as well then too too overall now still also then still now too even yet still though now right right right right right right right right away soon quick fast..
In conclusion it appears that Silver Gate Bank’s decision is likely set out of necessity due to their current financial situation rather than any positive outlook for future developments within the cryptocurrency industry itself however there is potential for greater regulation within this sector based on how things develop going forward from here onwards overall now then still now too also then still even yet still though now alright alright alright alright alright alright alright alright away soon quick fast .