Silvergate shuts down crypto payments network; shares drop after hours | – #Silvergate #shuts #crypto #payments #network #shares #drop #hours

March 3 (Reuters) – Silvergate Capital Corp ( SI.N ) said on Friday it had taken a “risk-based decision” to suspend Silvergate Exchange Network, a crypto payments network, two days after the bank raised doubts about its focus on digital assets. its viability.

“Effective immediately Silvergate Bank, Silvergate made a risk-based decision to discontinue the Exchange Network (SEN). All other deposit-related services remain operational,” Silvergate said in a statement posted on its website.

Silvergate Exchange Network, one of the bank’s most popular offerings, is traditional bank unlike its wires, it allowed for round-the-clock transfers between investors and cryptocurrencies.

Shares of Silvergate fell more than 2% in after-hours trading after closing up 0.9% at $5.77 in regular trading. Shares fell to record lows on Thursday, ending the day more than 97% below their all-time high in November 2021.

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Silvergate warned in a filing on Wednesday that it was assessing its ability to operate as a going concern, saying it had sold additional debt securities at a loss this year and that additional losses could be “well capitalized” by the bank.

Following the warning, cryptocurrency heavyweights Silvergate, including Coinbase Global Inc and Galaxy Digital bank left as a partner. Stablecoin issuers Paxos and Circle, Cboe’s digital asset exchange and cryptocurrency exchanges Bitstamp and Gemini have also terminated their partnerships with Silvergate.

Reporting by Akriti Sharma in Bengaluru; Edited by Leslie Adler

Our standards: Thomson Reuters Trust Principles.

2023-03-04 05:04:46
Source – reuters

Translation“24 HOURS”