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Contagion Means Survive

@cmsholdings

Jun 28, 2020

People still don’t fully bake in the risk something happens to silvergate and the ramifications for crypto broader

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SBF

@SBF_FTX

Jun 28, 2020

Silvergate SEN is down for ~7 hours; because of this, stablecoin creation/redemptions are down. This means that FTX withdrawals of stablecoins may be impacted during this period. If you register a withdrawal now it will process when SEN comes back up. (Or 24h at the latest.)

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Great observation. There are four banks essentially that connect the crypto world to fiat in our view: Silvergate, Signature, Deltec, and Far East Intl. We estimate Silvergate by far is the largest in traffic / Deltec in Assets. That crypto-fiat bridge isn’t so wide...

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Never understood why the stable coin issuers are single platform on Silvergate unless Signature won’t bank them?

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I'm surprised too, though: 1) Most people are on SEN anyway 2) SigNET was terrible until relatively recently 3) If you care about creation/redemption speed in crypto you're *definitely* on SEN

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100% SEN makes sense as the primary source. It won via network effect. The latest signet API and its process flow / txid system feels so much more natural for folks in this space. Having both is a big benefit and reduces systemic exposure to a single publicly traded company.