Silvergate Bank, a crypto-friendly bank, has been hit hard by a series of partner breakups, causing its shares to plummet. The latest blow came from Coinbase, which announced on Thursday that it would no longer support deposits and withdrawals via Silvergate. Instead, the exchange has switched to Signature Bank due to an “abundance of caution” from Silvergate.
Other partners have also cut ties with Silvergate, including Bitstamp, Paxos, and Galaxy Digital. Bitstamp and Paxos suspended all SEN transfers and wires from Silvergate to protect customers’ funds and assets, while Galaxy Digital terminated all transfers with the bank.
These developments have raised concerns about the future of Silvergate, which has been a popular choice for crypto companies looking for banking services. The bank has been a key player in the crypto industry, providing services to companies such as Coinbase, Gemini, and Kraken.
However, the recent partner breakups have raised questions about the bank’s stability and reliability. Some analysts believe that this could be the end game for Silvergate, as it struggles to maintain its position in the competitive crypto banking market.
Despite the setbacks, Silvergate remains optimistic about its future. In a statement, the bank said that it is “committed to serving the needs of the digital currency industry and will continue to work with our clients to provide the best possible service.”
The crypto industry is known for its volatility, and Silvergate’s recent troubles are a reminder of the risks involved in this emerging market. As the industry continues to evolve, it remains to be seen which players will emerge as the winners and which will fall by the wayside.
