Is crypto about to be unbankable? Crypto-friendly bank Silvergate is teetering, saying last week it could be left “less than well capitalized” after a run on deposits and shutting off its Silvergate Exchange Network payments system for crypto companies and big traders. The bank had been suffering from significant withdrawals following the collapse of FTX, which was a major customer.
The news prompted top crypto firms like Coinbase, Galaxy Digital and Circle to suspend ties with the bank and work more with other existing banking partners such as Signature Bank, though Signature itself has been trying to decrease its exposure to crypto companies.
