Silvergate Bank shuts down Exchange Network, transfers $9.9M to BlockFi.
Silvergate Bank, a prominent financial institution that specializes in serving cryptocurrency businesses, has announced the closure of its exchange network and the release of $9.9 million to the cryptocurrency lending platform BlockFi.
Silvergate’s Ongoing Efforts
The decision to close its exchange network was made as part of Silvergate’s ongoing efforts to streamline its operations and focus on its core banking services. While the network was not a significant revenue driver for the bank, it was a key part of its strategy to serve the needs of the crypto industry. However, with the closure of the network, Silvergate is now shifting its focus to its core banking services, including deposits, lending, and payment services.
Meanwhile, the $9.9 million release to BlockFi highlights the increasing collaboration between traditional financial institutions and the cryptocurrency industry. BlockFi, a rapidly growing crypto lending platform, has been expanding its services to cater to institutional investors.
Funds Released By Silvergate
The funds released by Silvergate will be used to support BlockFi’s institutional lending business, which allows institutional investors to borrow and lend cryptocurrencies and earn interest on their holdings.
The loan agreement between Silvergate and BlockFi is a testament to the growing partnership between traditional financial institutions and the cryptocurrency industry.
As the cryptocurrency market continues to grow, banks and other financial institutions are seeking ways to tap into the potential of this emerging asset class.
At the same time, cryptocurrency companies are seeking to partner with established financial institutions to gain access to their expertise, resources, and regulatory compliance.
Its decision to release funds to BlockFi is an indication of the bank’s commitment to supporting the growth of the crypto industry.
The closure of Silvergate’s exchange network and the release of $9.9 million to BlockFi signal the evolving relationship between traditional financial institutions and the cryptocurrency industry.
As the crypto market continues to mature, we can expect to see more partnerships and collaborations between these two sectors, as they seek to leverage each other’s strengths and expertise.