Closure of Silvergate’s Instant Settlement Service May Increase Use of Stable Currency
On March 7, Kaiko, a market research company, said in a report released on Monday that the troubled Silvergate Capital decided to close its popular instant set…
On March 7, Kaiko, a market research company, said in a report released on Monday that the troubled Silvergate Capital decided to close its popular instant settlement service SEN among large investors, which will improve the role of stable currency and its issuer in encrypted transactions. Kaiko’s report said: “With the demise of SEN, stable currency may become more common among traders.” Kaiko predicted that traders would no longer use bank channels to deposit dollars in the cryptocurrency exchange, but transfer funds to the issuer of stable currency to obtain stable currency, and then deposit stable currency in the exchange. The report added: “But the problem is that the issuer of the stable currency still needs to access the cryptocurrency bank, so now the risk is further concentrated.”
Kaiko report: The troubled Silvergate may improve the role of stable currency in encrypted transactions
Interpret the above information:
In a report released on March 7, Kaiko, a market research company, stated that Silvergate Capital had decided to close its popular instant settlement service SEN among large investors. This closure is expected to have a significant impact on the role of stable currency and its issuer in encrypted transactions. According to Kaiko’s report, the closure of SEN would make stable currencies more common among traders.
The report suggests that traders may no longer use bank channels for depositing dollars in cryptocurrency exchanges. Instead, they may transfer funds to the issuer of stable currency to obtain stable currency, which they can then deposit in the exchange. While this may simplify the transaction process for traders, it has the potential to create additional risk in the system. The issuer of stable currency would still need to access the cryptocurrency bank, thereby increasing the risk.
Stable currency has gained popularity over the years, as it is pegged to a stable asset (such as the US dollar), making it less volatile than other cryptocurrencies. Its use has grown to the extent that cryptocurrency exchanges have even started to include stable currency trading pairs. The closure of SEN is expected to accelerate this trend.
Silvergate’s instant settlement service was popular among large traders, as it allowed for the quick transfer of funds between the bank and exchanges. Its closure is expected to cause inconvenience for traders and may increase the time taken to complete transactions.
In conclusion, the report by Kaiko highlights the impact of the closure of Silvergate’s instant settlement service SEN on the use of stable currency in encrypted transactions. The closure of SEN is expected to lead to increased use of stable currencies among traders. However, the additional risk created by the need for stable currency issuers to access cryptocurrency banks needs to be monitored.
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/9606.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
-
What is the CSW case (CSI classic case)?
What is the CSW case? According to the financial report of Hexun, the CSW case i
-
What disk is Bitcoin divided into (Bitcoin dex)
According to Cointelgraph, in a recent report, it was mentioned what Bitcoin is divided into. According to the Coinmarketcap website, there are two main online and wallet platforms: Bitfinex (BTC-e), Bitstamp (BTC-X), and Gemini (USDT-E). Both exchanges were established in May 2017 and began a one-year service to convert customers’ encrypted assets into fiat currency. BitMEX is a Cryptocurrency trading platform headquartered in Hong Kong, which provides various digital asset trading and custody services According to btcmanager, Bitcoin dex is a specialized decentralized trading platform created by the Bitcoin Cash community. The focus of this platform is “ease of use and security”, and it states that users can use it to exchange any digital asset or service. According to official announcements, the exchange also supports BCH and LTC. In addition, Bitcoin dex can also run various tokens on other Cryptocurrency networks (such as Ethereum), including BNB, USDT, BTC and other ERC20tokens.
-
ShapeShift Counters Elizabeth Warren’s Encryption Bill
On February 20, the decentralized trading platform ShapeShift said on Twitter on February 19 that on Valentine\’s Day (February 14), Elizabeth Warren (US Senato…
-
What currency does Ethereum have (is Ethereum valuable)
What currency does Ethereum have Ethereum is a digital currency, different from Bitcoin, Monero and other crypto assets, its total issuance is only 21 million. According to the introduction, Ethereum token, rather than Bitcoin, is the most widely used in the blockchain network. In addition, Ethereum is the second largest decentralized application (DApp) and smart contract platform in the world; It can be used to pay transaction costs and support NFT projects, and also allows developers to create decentralized applications based on the Ethereum platform Is Ethereum valuableEditor’s note: This article is from the vernacular blockchain (ID: hellobtc), the author is 0x29, and Odaily Planet Daily has been authorized to reprint it The price of Ethereum began to rise all the way at the end of last year. By the end of the press release, it had risen to about $10000. Although it has not yet reached the highest point in history, it is still worthy of our attention and…
-
Haru Invest Announces Its European Union Operating Headquarters
On March 27th, the digital asset management platform Haru Invest announced that its European Union registered subsidiary Haru EULimited UAB has become its Europ
-
Fractal Raises $6 Million to Establish Transparent Clearing and Settlement Platform
According to reports, encryption startup Fractal announced a fundraising of $6 million on Monday. At present, it is establishing a platform to promote more tran
-
Solana Option Agreement Cega to Launch Leveraged Option Vault Strategy on Ethereum
It is reported that the Solana Option Agreement Cega will be launched on the main Ethereum network. The agreement will provide a Leveraged Option Vault (LOV) st
-
Divly completes $400,000 financing round to expand its crypto tax service
On March 7, Divly, a crypto tax service startup, announced that it had completed a $400000 financing, with DHS Venture Partners, Green Ventures and YEoS Ventur…
-
Nishad Singh Accused of Fraud and Mismanagement by SEC and CFTC
On March 2, the United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) made the latest allegations against …
-
Galaxy Digital has hired 6 new employees in Hong Kong
On April 13th, Novogratz, CEO of Galaxy Digital, a crypto financial services company, announced that he had hired six new employees in his office in Hong Kong,