Silvergate Has Suspended SEN Services, But Deposit Services Remain Operational
- Silvergate Capital Corp has suspended Silvergate Exchange Network (SEN) services.
- The bank, which cautioned this week about its capacity to stay in business, has shut down its SEN platform, which institutions used to transfer funds to cryptocurrency exchanges.
Silvergate Capital Corp announced the suspension of Silvergate Exchange Network (SEN) services on March 4, according to government sources. The decision was taken on the basis of risk and takes effect immediately. All other deposit-related services are operational.
Silvergate Capital Corp has suspended Silvergate Exchange Network (SEN) services. The decision was taken on the basis of risk and takes effect immediately. All other deposit-related services are operational. The bank was cautioned this week about its capacity to stay in business, has shut down its SEN platform, which institutions used to transfer funds to cryptocurrency exchanges.
“Effective immediately, Silvergate Bank has made the risk-based decision to suspend the SEN, all other deposit-related services continue to operate normally. Unfortunately, we do not have any more information to give at this time,” stated the spokeswoman.
SEN is a 24-hour rapid settlement service that clients of the bank may utilize to execute transactions with one another at any time, including evenings and weekends. The service was used by a number of large crypto businesses, including Binance US, Kraken, Gemini, and ErisX (before to its acquisition by Cboe).
The crypto friendly bank has had a difficult week. Coincu recently reported that Coinbase has discontinued its relationship with Silvergate Bank because to concerns about the bank’s financial stability. As struggling cryptocurrency bank confirmed that it is experiencing capitalization issues and is reevaluating its operations, Coinbase announced that it will no longer use Silvergate to make dollar payments for its top clients.
“In light of recent developments and out of caution, Coinbase is no longer accepting or initiating payments to or from Silvergate and will be enabling institutional customer cash transactions using our other banking partners,” the business added.
The bank indicated that it does not expect it will be able to submit all of the required data for the report due on March 16 for the fiscal year that ended on December 31. The bank’s stock price dropped on fears that it might be unable to continue as a going concern. The bank shares hit a new low in pre-market trading. Coinbase has also adopted Signature Bank for its Prime subscribers, according to a client email.
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