Silvergate is not a systematic risk for the United States banking system, but it could have a significant impact on the crypto markets, multiple sources told Cointelegraph. These may include increasing banking concentration in a few partners and challenges for venture capital firms seeking to establish banking relationships in the country.
The bank was a crypto-fiat gateway network for financial institutions and one of the major on-ramps for cryptocurrencies in the United States until March 8, when its parent company, Silvergate Capital Corporation, disclosed plans to “voluntarily liquidate” assets and shut down operations.
The move affects a “huge number of market markers and exchanges” that relied on the bank to process instant crypto-fiat transactions, explained Mark Lurie, CEO and co-founder of Shipyard Software, a decentralized development
Trending: UPDATE: Nuclear Power Plant Shuts Down After Second Radioactive Leak Discovered
Join the conversation!
Please share your thoughts about this article below. We value your opinions, and would love to see you add to the discussion!