Silvergate Bank has stopped its instant settlement service called Silvergate Exchange Network (SEN), which was used by institutions to transfer money to crypto exchanges.
The decision was made based on risk, and the bank's spokesperson confirmed the discontinuation to crypto companies.
The bank's other deposit-related services remain operational. The bank had major crypto firms like Binance US, Kraken, Gemini, and ErisX (before its acquisition by Cboe) as clients for SEN. The bank faced a rough week, with delayed filing of annual reports, investigations from regulators and the U.S.
Department of Justice, and doubts about its ability to be a "going concern" in the next year. As a result, several prominent crypto clients withdrew from the bank, leading to a 60% drop in its stock price, which later stabilized on Friday.