Takes a Hit: Maintaining Fiat On-Ramps in a Crypto Banking Crisis

Vignesh Karunanidhi Takes a Hit: Maintaining Fiat On-Ramps in a Crypto Banking Crisis
Source: Bitcoin News

After missing the deadline for filing its annual report, Silvergate has come under fire. Concerns were raised about the delay in filing the report since the bank said it was assessing its operational viability.

The red flags definitely raised concerns, as cryptocurrency firms ended their relationship with the bank. On the list, was a notable name. With the ongoing issues in place, is currently only providing Euro-denominated banking services to European Economic Area users. This is due to the lack of a trustworthy banking partner for the USD deposits.

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Source: Bitcoinist is struggling to find a reliable banking partner

The falling cryptocurrency prices and the deteriorating relationship with the banks have made the situation worse for Initially, the exchange was partnered with Transactive Systems. However, the relationship was affected when it was ordered to cease dealing with cryptocurrencies.

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Another banking partner, Metropolitan Commercial Bank, also exited the cryptocurrency industry, which affected’s USD fiat deposits. The issues escalated after the Silvergate event. Silevergate Bank decided to shut down and liquidate the bank. It all began with the fallout of the FTX exchange, which triggered the bank’s present situation. According to the reports, the bank has over $11 billion in assets under management.