Coinbase, Galaxy Digital abandon Silvergate after lender flags risks to business

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Cryptocurrency heavyweights including Coinbase Global Inc and Galaxy Digital on Thursday dropped Silvergate Capital Corp as their banking partner after the lender's latest filing raised questions about its ability to stay in business.

"The result of this remains to be seen, but we could potentially see a contagion from crypto businesses who use Silvergate Bank being impacted," Sotiriou added.

"This could potentially mean a certain trend towards crypto offshorization, at least until more comprehensive regulatory framework is established in the U.S." and others to facilitate cash transactions for institutional clients who had parked funds with the exchange.

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