Published Mar 06, 2023 06:59AM ET
Updated Mar 06, 2023 03:21PM ET
(Reuters) - A slew of cryptocurrency heavyweights including Coinbase (NASDAQ:COIN) Global Inc and Galaxy Digital ditched Silvergate Capital (NYSE:SI) Corp as their banking partner after the lender's latest filing raised questions about its ability to stay in business.
La Jolla, California-based Silvergate, one of the most influential banks in the digital asset industry, also said it has made a "risk-based decision" to discontinue the Silvergate Exchange Network that enabled crypto payments.
Shares of the crypto-friendly bank have lost nearly 98% in value from their record close in November 2021.
Here is a list of crypto firms that have issued statements in light of the developments at the embattled bank:
The crypto exchange said its corporate and customer fund exposure to Silvergate was quite limited, adding that all customers' funds were safe.
Bakkt Holdings Inc:
The digital asset platform said it was closely monitoring the situation with Silvergate and was in the process of discontinuing certain services.
Microstrategy (NASDAQ:MSTR) Inc:
The crypto firm said it has a loan from Silvergate not due until the first quarter of 2025, adding that the bank's insolvency or bankruptcy will not accelerate the loan. Acceleration clause requires a loan to be repaid immediately under certain conditions.
The crypto exchange said it was no longer accepting or initiating payments to or from Silvergate. The firm also said it has minimum exposure to the crypto-focused bank.
A spokesperson for the crypto exchange said in an emailed statement to Reuters it was temporarily suspending USD deposits and withdrawals via Silvergate out of caution.
The crypto firm said on Twitter it has stopped accepting customer deposits/processing withdrawals via automated clearing house (ACH) and wire transfers through Silvergate on the Gemini exchange.
The company said in a tweet in light of recent developments that it has stopped accepting or initiating transfers to Silvergate, adding that it has no material exposure to the bank.
The crypto exchange said that as a precautionary measure in light of recent news it is no longer processing transfers with Silvergate, adding that client funds remain secure and fully available.
The firm said it is sensitive to the concerns around Silvergate and is in the process of unwinding certain services with the bank and notifying customers.
The crypto firm said it does not have any material exposure to Silvergate but added that in light of recent developments with the bank, it has discontinued all Silvergate Exchange Network transfers and wires to its Silvergate account.
Cboe Clear Digital:
The company said it would be pausing all transactions with Silvergate Bank at this time until further notice.
The company's chief technology officer said on Twitter it has no exposure to Silvergate.
Written By: Reuters
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