crypto coins supporting at Silvergate Bank The difficulties experienced prompted crypto fund managers to look for other ways.
Cryptocurrency Fund Managers Looking For An Alternative To Silvergate Bank
US credit institution Silvergate Bank an oversight of $400 million to fill the void left by the collapse of a major payments network operated by cryptocurrency fund manager seeks help from Swiss banks.
Digital Asset Capital Management, funds coinbase used Silvergate’s 24-hour, real-time network to port it to its platform.
However coinbase, Crypto.com And Gemini It is one of the exchanges that will no longer accept or initiate payments through Silvergate.
“There are some banks that do crypto transactions, but unlike Silvergate, they are not crypto-focused,” Richard Galvin, co-founder of Digital Asset Capital Management, said in an interview Friday.
“Finding a banking partner can take some time. We are in talks with some Swiss banks.”
Galvin, who didn’t name the banks, said concerns about Silvergate “increase the difficulty level” of transferring cash to crypto exchanges and that it may take longer for funds to move as the Silvergate network allows for fast transfers between accounts, exchanges and over-the-counter trading platforms.
The crypto industry has long struggled for ready access to traditional banks, many of which are wary of the volatility in digital assets and the potential regulatory heat.
Silvergate tried to fill this gap, but fell victim to the contagion caused by the FTX stock market crash in November.
Silvergate experienced a surge in deposits last year following the bankruptcy of a key client, FTX. This week, the bank said it was reviewing whether it could survive.
In Switzerland, Sygnum Bank AG and SEBA Bank AG are among those working with the digital asset sector. Further afield, Deltec Bank & Trust Ltd. in the Bahamas. and Capital Union Bank is also known for its crypto focus.
*Not investment advice.
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