Silvergate suspends crypto payment network.Stock prices fall after hours

Silvergate Capital Corp said Friday it had made a “risk-based decision” to shut down its crypto-payments network, the Silvergate Exchange Network, two days after the digital asset-focused bank questioned its viability. rice field.

In a statement posted on its website, Silvergate Bank said, “Silvergate Bank has taken a risk-based decision to discontinue the Silvergate Network of Exchanges (SEN) with immediate effect. is still in operation,” he said.

One of the bank’s most popular services, the Silvergate Exchange Network enables round-the-clock transfers between investors and cryptocurrency exchanges, unlike traditional bank transfers that often take days to settle. I made it

Silvergate shares fell more than 2% in after-hours trading after closing 0.9% higher at $5.77 in regular trading on Friday. The stock fell to a record low on Thursday, plunging him more than 97% from its all-time high in November 2021.

Silvergate warned in Wednesday’s filing that it was assessing its ability to operate as a going concern, selling additional debt securities this year and making losses, and further losses would mean the bank “does not have sufficient capital.” “It could mean that

After the warning, cryptocurrency giants such as Coinbase Global Inc and Galaxy Digital dropped Silvergate as a banking partner. Stablecoin issuers Paxos and Circle, Cboe’s digital asset exchange, and cryptocurrency exchanges Bitstamp and Gemini have also suspended their partnerships with Silvergate.