- Previously, the fund manager used Silvergate’s network to move funds to exchanges.
- Silvergate share plummeted by 50% after fresh revelations about its exposure to FTX.
With the collapse of a crucial payments network run by troubled US lender Silvergate Capital Corp., Digital Asset Capital Management (DACM), a crypto fund manager overseeing a $400 million crypto fund, has turned to Switzerland banks for assistance.
In a statement made on Friday, Richard Galvin, the co-founder of DACM, told Bloomberg about the company’s intention. In Galvin’s words:
There are some banks that handle crypto transactions, but they are not crypto-focused, unlike Silvergate. It might take some time to find a banking partner. We’re speaking to some Swiss banks.
Additionally, Galvin said the uncertainty surrounding Silvergate raised the difficulty of moving money to crypto exchanges and that the process could take longer than usual. Previously, DACM used Silvergate’s real-time network to transfer funds to and from Coinbase Global’s platform. However, Silvergate is no longer supported by several major exchanges, including Coinbase, Crypto.com, and Gemini.
Notably, Swiss financial institutions dealing with digital assets include Sygnum Bank AG and SEBA Bank AG. On Thursday, the share price of Silvergate plummeted by nearly 50% after fresh revelations about its exposure to the bankrupt FTX crypto exchange prompted questions regarding the bank’s ability to recover.
Some crypto pundits have argued that the Silvergate share fall affected the crypto industry as Bitcoin (BTC), Ethereum (ETH), and other altcoins began trading in the red. In the last 24 hours, the price of BTC fell by over 5%, putting its cumulative seven-day performance at a negative growth.
The cryptocurrencies that took the worst hit, as shown in their weekly performance on CoinMarketCap, included Cardano (ADA), Polygon (MATIC), and Solana (SOL).