FalconX Stops Using Silvergate’s SEN Network

FalconX, a cryptocurrency trading platform, has decided not to route cryptocurrency bank Silvergate transfers.
“We will not use Silvergate SEN or wires immediately, and until further notice, out of an abundance of caution for customers.” This decision is based upon publicly available information about Silvergate and is consistent in other market players.
Silvergate Exchange Network (SEN) was the bank’s internal rails that allowed partners to quickly transfer and receive US dollars and euro at any hour of the day. FTX, a defunct cryptocurrency trading platform, was also Silvergate’s major client. According to the bank’s September 30th report, it still had $11.9billion in crypto-related client deposits. FTX accounted less than 10%. This would indicate that more than $1billion of Silvergate’s assets is currently inactive while bankruptcy proceedings are ongoing. Still, since FTX experienced its own $6 billion bank run, which caused it to fail, markets have been closely monitoring Silvergate.A rush of cash withdrawals from cryptocurrency exchanges or redemption of USDC through Circle could push Silvergate to its breaking point, according to speculators.According to the email, FalconX would accept payment in USDC stablecoin.DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.Join us to keep track of news: coincu.comHaroldCoincu NewsTags: FalconXFTXSENSilvergateUSDC