Galaxy remote servicing suite5/16/2023 Cumberland, the crypto division of Chicago-based trading giant DRW, said that it had “minimal exposure” on Silvergate over the last few months. announced that they will no longer accept or initiate payments through Silvergate, as did Gemini Trust Co., and Cboe Clear Digital LLC.Ĭircle Internet Financial Ltd., the issuer of stablecoin USDC, said it’s “unwinding certain services” with Silvergate. Coinbase Global Inc., Galaxy Digital and Paxos Trust Co. That warning prompted swift reactions by crypto exchanges, stablecoin issuers and trading desks. It also indicated it was being investigated by the US Justice Department. On Wednesday, the bank said it sold more debt holdings at a loss and was reviewing whether it can remain viable. Silvergate suffered from a run on deposits already last year, triggered by the bankruptcy of its key client FTX. This time, the counterparty is Silvergate Capital Corp., the bank behind a widely used payments network that facilitates the real-time transfer of money between crypto firms. (Bloomberg) - Less than four months after the collapse of the FTX exchange, crypto companies are again finding themselves assessing exposure to an embattled partner and cutting ties preemptively to avoid contagion.
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