Mar 3 (Portal) – Silvergate Capital Corp (SI.N) said on Friday it had taken a “risk-based decision” to shut down the Silvergate Exchange Network, its crypto payments network, two days after the one focused on digital assets Bank had expressed doubts about its viability.
“Effective immediately, Silvergate Bank has made a risk-based decision to discontinue the Silvergate Exchange Network (SEN). All other deposit-related services remain operational,” Silvergate said in a statement published on its website.
The Silvergate Exchange Network, one of the bank’s most popular offerings, enabled 24/7 transfers between investors and crypto exchanges, in contrast to traditional bank transfers, which can often take days to process.
Silvergate shares fell more than 2% in after-hours trading on Friday after closing down 0.9% at $5.77 in regular trading. Shares had fallen to a record low on Thursday, ending the day down more than 97% from their all-time high set in November 2021.
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Silvergate warned in a filing on Wednesday that it was evaluating its ability to continue as a going concern, saying it had sold more debt at a loss this year and that further losses could mean the bank was “less than well capitalized.” could.
Following the warning, cryptocurrency heavyweights such as Coinbase Global Inc and Galaxy Digital dropped Silvergate as their banking partner. Stablecoin issuers Paxos and Circle, digital asset exchange Cboe, and crypto exchanges Bitstamp and Gemini have also suspended their partnerships with Silvergate.
Reporting by Akriti Sharma in Bengaluru; Adaptation by Leslie Adler
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