The bank offers a widely used payments network that facilitates the real-time transfer of funds between crypto firms. But many digital-asset exchanges, stablecoin issuers and trading desks are“Silvergate is one of the main US dollar banking providers for the crypto industry,” said John Toro, head of trading at digital-asset exchange Independent Reserve. “Any liquidity concerns will have a direct impact on market conditions and may affect the access and availability of some client funds.
The digital-asset sector is also contending with a broader regulatory clampdown in the US as well as expectations that interest rates will stay higher for longer to fight inflation, sapping risk appetite.Bitcoin’s tumble brought some key technical levels into focus. The token has dropped below its 50-day moving average, which for some chart analysts adds to the risk of further declines.
The token is meant to have a constant $US1 value and is widely used to facilitate digital-asset tradingThe stablecoin doesn’t have any exposure to Silvergate, Paolo Ardoino, chief technology officer at Tether, said on Twitter.