Payment partners distance themselves from Silvergate
The crypto bank Silvergate is currently fighting to survive.
The crypto bank Silvergate is currently fighting to survive. Former payment partners LedgerX and Coinbase are abandoning the sinking ship.
Questions about Silvergate's financial health are weighing on crypto prices. Several partners are stopping payments to the company. Among them: the FTX-linked crypto derivatives platform LedgerX and, most recently, exchange Coinbase.
The crypto exchange describes the exit as a preventive safety measure. The San Francisco-based company will process transactions, especially those from institutional clients, through other payment partners. Which providers those will be concretely is not known. Coinbase may, like LedgerX, also start using Signature Bank.
Anyway, the noose around Silvergate is tightening. Yesterday the bank questioned its own solvency in a letter to the SEC. Shortly after, Silvergate's shares were sold off. At the time of the letter, SI was trading at 7.51 US dollars—a drop of nearly 45 percent.
