Silvergate Bank, a crypto-friendly finance firm, has recently been having issues in regard to specific types of wire transfers. This started to occur ever since Friday. As it stands now, the firm attributed the delay to an outage of their payment processor, Fedwire, to be exact.
Payment Processor Causing Deposit Delay
Alan Lane, the CEO of Silvergate Bank, confirmed that the company was having problems processing payments from select clientele. However, he was quick to state that this did not affect users who had already deposited funds into Silvergate, to begin with.
Lane explained that Silvergate’s trading partners send the bank funds on Friday. These funds are then made ready to transfer to OTC desks across the weekend, just in case there stands an opportunity to make good trades within the weekend. These people are having issues, according to Lane, but he explained that those that already have funding on the platform are having no problems with their accounts.
Using A Backup
As it stands now, Silvergate will process the orders manually via a backup processor, but this will take longer than usual, as one would assume. Lane took the sweet time to express his company’s disappointment with the service provider. He was also quick to point out that the funds of these clients are safe, just a bit caught up in the backlog.
Silvergate has been one of the pioneers in crypto-friendly banking firms within the US. The California-based commercial banking firm had started offering its crypto-backed loans back in August of 2019.
Big Names Affected By The Pandemic
Furthermore, some of Silvergate’s clients stand as significant crypto exchanges, which brought in hundreds of crypto-related clients for the company back in the fourth quarter of 2018. Among these considerable exchanges stand big names like Kraken and Gemini, Silvergate providing various financial services to all involved parties.
Silvergate has not been exempt from the rampant effects of the coronavirus, however. Much like Coinbase, or any other major business firm for that matter, a large proportion of its staff is working remotely to try and stay safe from the pandemic. For Silvergate in particular, the number of remote-working staff members is above 50%. Luckily for the bank, it didn’t do anything incredibly unethical or unwise in light of this event, so their business licenses will stay within their grasp.
GameStop has instructed employees to tell law enforcement trying to shut down their stores that they're "essential retail." They've been handed a flyer they're supposed to give police with a number for GameStop's corporate office. https://t.co/PVvBXTymcf
— Patrick Klepek (@patrickklepek) March 19, 2020
As it stands now, Silvergate Capital went public relatively recently, on the 7th of November, 2019. At the time of writing, a share within the firm is being traded for about $9.71.