JPMorgan Chase: Some services provided by Silvergate will migrate to banks such as Signature Bank

According to a research report from JP Morgan Chase cited by CoinDesk, the termination of crypto-friendly bank Silvergate’s token and Silvergate Exchange Network (SEN) poses a challenge to the crypto industry, as traditional banks are generally reluctant to cooperate with crypto companies and face regulatory pressure. It is difficult for any institution to replace Silvergate. Meanwhile, at least some of the payment and custody services provided by Silvergate will migrate to other banks, including Signature Bank (SBNY), Provident Bancorp (PVBC), Metropolitan Commercial Bank (MCB) and Customers Bancorp (CUBI), the report said. Currently, some clients who have left Silvergate have migrated to SBNY, but due to regulatory pressure and market risk, there may be limitations to its ability to replace Silvergate. SBNY has said it plans to reduce its reliance on digital asset customer deposits.