Crypto-Friendly Bank Silvergate to Wind Down Operations
In a surprising move, Silvergate, the crypto-friendly bank, has announced that it will be winding down its operations. The bank cited “recent industry and regulatory developments” as the reason for its decision.
According to a press release by Silvergate Capital Corporation, the holding company of Silvergate Bank, an orderly wind-down of bank operations and a voluntary liquidation of the bank is the best path forward. The bank has assured its customers that all deposits will be fully repaid.
In addition to winding down its operations, Silvergate also announced that it will be discontinuing the Silvergate Exchange Network. The network was designed to facilitate the transfer of digital assets between exchanges and institutional investors.
Silvergate’s decision to wind down its operations comes as a surprise to many in the crypto industry. The bank has been a key player in the space, providing banking services to some of the biggest names in the industry.
The bank’s proprietary technology and tax assets are expected to be preserved as part of the wind-down process. Silvergate Capital said it is voluntarily liquidating the bank “in an orderly manner and in accordance with applicable regulatory processes.”
The news of Silvergate’s decision to wind down its operations has sent shockwaves through the crypto industry. Many are left wondering what this means for the future of crypto banking and whether other banks will follow suit.
