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Silvergate Bank headquarters in La Jolla, California.
Photographer: Ariana Drehsler/BloombergMax Reyes
Yueqi Yang
Tom Schoenberg
Silvergate Capital Corp. suspended activity on its payments network that allows cryptocurrency firms with accounts at the bank to send each other fiat currency instantaneously.
“Effective immediately Silvergate Bank has made a risk-based decision to discontinue the Silvergate Exchange Network (SEN),” the firm said Friday on its website. “All other deposit-related services remain operational.”
Silvergate said in a Wednesday filing it was questioning its viability after suffering a $1 billion loss at the end of the fourth quarter and further losses in January and February. Clients have moved to distance themselves from the bank amid mounting uncertainty.
