Crypto Payments Network Discontinued by Silvergate

Silvergate Bank is a prominent bank that majorly deals in crypto transactions. It is based in the USA and is under the parent organization Silvergate Capital.

The parent company had a crypto payments network, called the Silvergate Exchange Network, that facilitated a huge audience. It enabled convenient and quick transfers between investors and exchanges 24/7, which was a standout benefit.

Despite it being the most popular offering of the bank, Silvergate Capital announced the suspension of its crypto payments network on Friday, 3^rd March 2023. This came as a shock to many and significantly impacted the crypto market as well.

A statement was also published on the company’s website, according to which this was a “risk-based decision”.

Shortly after the news broke, shares of the company plunged but that’s not all. A significant price drop was also noted for the cryptocurrencies, including Bitcoin.

Here is a chart by CoinMarketCap that shows the impact of Silvergate’s decision on BTC’s price over the last few days.

Major stablecoin issuers such as Paxos and Circle and prominent crypto exchanges such as Coinbase, Bitstamp and Gemini have also ended their partnerships with the organization, and the list keeps growing.

At Coinbase all client funds continue to be safe, accessible & available.

In light of recent developments & out of an abundance of caution, Coinbase is no longer accepting or initiating payments to or from Silvergate.

— Coinbase (@coinbase) March 2, 2023

While it has not been officially announced, it is speculated that the list of crypto platforms no longer partnered with Silvergate also includes Bybit.

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