It’s not good news for the crypto market, but one that comes as no surprise. The banking house Silvergate Capital has long announced that it may have to cease operations. Many crypto companies rely on Silvergate – a US bank specializing in crypto currencies. But as the bank stumbled, more and more customers lost confidence. Coinbase, Paxos, Circle and Gemini turned away from the bank, according to “heise”. This couldn’t go well.
Now, with Silvergate, another giant of the industry has been hit. Due to market developments, it was simply no longer possible to keep up the business. Since the bankruptcy of the crypto exchange FTX at the end of the previous year, things had become difficult for the financial group. Now the shares of the bank, which was founded in 1988, have fallen by 35 percent. This is a painful loss for the industry, because the SEN payment network was an important transfer channel for professional investors. Last year, 560 billion US dollars were moved in this way. In 2021 it was 787 billion US dollars. Silvergate’s replacement is Signal, also a US bank that is reportedly looking to reduce rather than increase its exposure to the crypto world.
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