(Reuters) – A number of crypto heavyweights including Coinbase (NASDAQ:COIN) Global Inc and Galaxy Digital have passed on Silvergate Capital (NYSE:SI) Corp as a banking partner. The financier’s latest filing has raised questions about its ability to continue doing business.
La Jolla, Calif.-based Silvergate, one of the most influential banks in the digital asset industry, also said it made a “risk-based decision” to discontinue the Silvergate Exchange Network, which allows cryptocurrency payments. said.
Crypto-friendly bank shares have lost almost 98% of their value from their record November 2021 close.
Below is a list of cryptocurrency companies that have issued statements in light of the distressed bank developments.
The cryptocurrency exchange added that corporate and customer funds exposure to Silvergate is fairly limited and all customer funds are safe.
Bakkt Holdings Co., Ltd.:
The digital asset platform said it is closely monitoring the situation at Silvergate and is in the process of discontinuing certain services.
Microstrategy (NASDAQ:MSTR) Inc:
The crypto firm said it has a loan from Silvergate that does not expire until the first quarter of 2025, adding that a bank or bankruptcy would not accelerate the loan. Acceleration clauses require immediate repayment of loans under certain conditions.
The cryptocurrency exchange said it would not accept or initiate payments to or from Silvergate. The company also said it has minimal exposure to crypto-focused banks.
In a statement emailed to Reuters, a spokesperson for the cryptocurrency exchange said it was cautiously suspending U.S. dollar deposits and withdrawals through Silvergate.
The cryptocurrency company said on Twitter that it has stopped processing customer deposits/withdrawals through Automated Clearing House (ACH) and accepting wire transfers through Silvergate on the Gemini exchange.
In a tweet, the company said it had stopped accepting or initiating transfers to Silvergate in light of recent developments, adding that it had no material exposure to banks.
The cryptocurrency exchange said it has stopped processing money transfers on Silvergate as a precautionary measure in light of recent news, adding that customer funds remain safe and fully available.
The company said it was sensitive to concerns surrounding Silvergate and was in the process of rolling back certain services with banks and informing customers.
The crypto firm said it has no material exposure to Silvergate, but added that it has stopped all transfers on the Silvergate exchange network and wire transfers to Silvergate accounts in light of recent developments with banks. .
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Cboe Clear Digital:
The company said it is suspending all transactions with Silvergate Bank at this time until further notice.
The company’s chief technology officer said on Twitter that it has no contact with Silvergate.