Signature Bank Shares Fall as Silvergate Plans to Wind Down Operations
Shares of Signature Bank, a leading bank for crypto firms, fell on Thursday after Silvergate, another major player in the industry, announced its plans to wind down operations. Signature Bank’s stock price dropped by over 10% to around $92.40 per share, its lowest price in over two years. Meanwhile, Silvergate’s stock price plummeted by over 20% to around $3.88.
Silvergate Capital Corporation, the holding company for Silvergate Bank, cited “recent industry and regulatory developments” in its announcement on Wednesday that the California-based bank would voluntarily liquidate. The bank said it plans on repaying bank deposits to customers in full.
The announcement came after Silvergate said it would shut down its Silvergate Exchange Network (SEN), a round-the-clock settlement service used by its clients. Over the past week, multiple firms native to the digital assets industry have stepped away from Silvergate. At least four cryptocurrency firms have announced that they will be moving their business to other banks.
The news of Silvergate’s liquidation has sent shockwaves through the crypto industry, with many wondering what this means for the future of crypto banking. Some experts believe that this could be a sign of things to come, as regulators continue to scrutinize the industry and banks become more cautious about their involvement in the space.
Despite the uncertainty, Signature Bank remains committed to serving the crypto industry. In a statement, the bank said that it “remains fully committed to providing banking services to the digital assets industry and will continue to do so with the highest level of compliance and regulatory oversight.”
