JPMorgan Reports After Leading Crypto Bank Silvergate Announces Suspension of Services The crypto market will face big challenges.
Silvergate is a gateway to institutional clients in the crypto industry, with over 1,000s of exchanges, Bitcoin miners, stablecoin miners, and crypto fund managers using Silvergate for transfers. Fiat with Silvergate account
The next challenge will be to find a network that will replace Silvergate in order to process dollar deposit and withdrawal transactions. Especially now that the crypto market is relatively crises, many traditional banks are reluctant to interfere with crypto firms.
However, Silvergate’s other services, such as payments and escrow, are being replaced by Signature Bank (SBNY), Provident Bancorp (PVBC), Metropolitan Commercial Bank (MCB), and Customers Bancorp (CUBI). Silvergate
Some Silvergate customers have migrated to Signature Bank, but its ability to replace Silvergate appears to be limited due to the legal market’s desire to mitigate the risks associated with cryptocurrencies. It also announced that it would reduce its customers’ reliance on digital asset deposits.
At the moment, it seems governments are becoming more stringent towards crypto, which means that US customers may have fewer options for crypto services and investors may flee to them in the future. in other sectors such as Europe instead.
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