Speculations Rise as Silvergate Bank Goes into Voluntary Liquidation
According to reports, the San Francisco Federal Housing Loan Bank (FHLBank) provided $4.3 billion to Silvergate at the end of last year, and did not force Silve
According to reports, the San Francisco Federal Housing Loan Bank (FHLBank) provided $4.3 billion to Silvergate at the end of last year, and did not force Silvergate to repay the advance payment. This is rumored to be the reason why the cryptocurrency friendly bank entered voluntary liquidation. A spokesman for the bank said, “FHLBank San Francisco has not requested or forced Silvergate Bank to prepay its outstanding prepayment. Silvergate has decided to prepay the outstanding prepayment based on its own assessment of its own situation.”
FHLBank: Silvergate did not stop lending
Analysis based on this information:
The recent news of Silvergate Bank entering voluntary liquidation has sparked various speculations regarding the reason for this move. Reports suggest that the San Francisco Federal Housing Loan Bank (FHLBank) provided a considerable amount of $4.3 billion to Silvergate Bank towards the end of last year but did not ask for a repayment of the advance payment received.
The rumor linking the advance payment to Silvergate Bank’s voluntary liquidation is that the bank entered liquidation due to its decision to repay the outstanding prepayment that it received from FHLBank on its own assessment. It is noteworthy that Silvergate Bank has always been known for its friendly stand towards the cryptocurrency industry, and the rumor of its liquidation due to an advance payment has caught the attention of many.
The statement from the spokesman of the bank clarifies that FHLBank San Francisco did not request or force Silvergate Bank to prepay its outstanding prepayment. The decision to prepay the prepayment was entirely based on the bank’s assessment of its own situation.
However, some experts in the banking industry view the voluntary liquidation of Silvergate Bank as more of a strategic move to restructure its business operations. The bank has emphasized that it will continue its operations and services to its clients as usual, even during its liquidation process.
Furthermore, some see the move beneficial for Silvergate Bank to streamline its services and focus on the cryptocurrency industry, which is its primary niche. Given the increasing popularity of cryptocurrencies and its broader acceptance, such a move from Silvergate Bank is seen as a wise decision to strengthen its foothold.
In conclusion, the reports of Silvergate Bank’s voluntary liquidation and its advance payment from San Francisco Federal Housing Loan Bank have stirred various interpretations and speculations. While some see it as a move to restructure its business, others link it to its friendly stance towards cryptocurrencies. However, the bank’s reassurance of continuing its services even during the liquidation process has eased concerns among its clients and stakeholders.
This article and pictures are from the Internet and do not represent SipPop's position. If you infringe, please contact us to delete:https://www.sippop.com/5532.htm
It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.
Related recommendations
-
Universal Ledger: The Secure Wallet Provider for Financial and Administrative Institutions
According to reports, Universal Ledger, a wallet as a service provider, announced the completion of a $10 million financing, led by Hard Yaka. Universal Ledger
-
Chinese cryptocurrency exchange OKX introduces support for Ordinal NFTs on its Plugin Wallet
According to reports, OKX Chinese tweets that the plugin wallet currently supports viewing and transferring Ordinal NFTs, and the mobile end is expected to be launched this week. I
-
MetaMask browser plug-in technical glitch
On February 16, the founder of Slow Fog shared that the MetaMask browser plug-in could not start the solution when replying to the community members\’ questions…
-
#The Declining Market Value of Twitter: Analysis of Musk’s Offer to Employees
On March 26th, Musk said in an email to Twitter employees that he was offering stock rewards to Twitter employees at a valuation of about $20 billion, which is
-
Low Node Participation Rate in Ethereum Goerli Test Network After Shapella Upgrade Activation
It is reported that the Ethereum Goerli test network activated the Shapella upgrade at 6:26 on March 15. When the block was triggered, the verification node par
-
MakerDAO Community Poll on Standardization of PSM Parameters: Diversifying vs. Maintaining USDC as Primary Reserve
On March 21, the MakerDAO community launched a public opinion poll on the standardization of PSM parameters. Option 1 of the proposal is to diversify the stable
-
3RM Raises $3.5 Million To Enhance Web3 Customer Relationship Management
It is reported that 3RM, a technology start-up, has completed a US $3.5 million financing, which will be used to build tools to help web3 better manage its rel…
-
Silvergate’s Share Price Takes a Steep Fall in the US Stock Market
It is reported that according to the latest data of the US stock market, Silvergate\’s share price fell to US $2.84 at the close of Thursday, a drop of 42.16%. A
-
Bitgert Ventures: Paving the Way for Next-Generation Cryptocurrency Products
It is reported that Bitgert, the mainstream cryptocurrency ecosystem driven by the native blockchain, announced that it is preparing to launch Bitgert Ventures,
-
South Korean Crypto Exchange Executive Faces Trial for Embezzlement and Public Fund Misappropriation
On April 24th, it was reported that Judge Kim Jong kyi of the 7th Criminal Division of the South District Court in Seoul, South Korea, set the first trial date