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Closure of Real-time Payment Network Encourages Use of Stable Currency in Cryptocurrency Transactions

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It is reported that a new study by Kaiko, a digital asset data provider, found that Silvergate\’s decision to close its real-time payment network may promote inv

Closure of Real-time Payment Network Encourages Use of Stable Currency in Cryptocurrency Transactions

It is reported that a new study by Kaiko, a digital asset data provider, found that Silvergate’s decision to close its real-time payment network may promote investors to use stable currency in cryptocurrency transactions. The study predicts that investors will not deposit US dollars in exchanges using Silvergate’s SEN and other bank tracks, but will deposit them in stable currency issuers to receive stable tokens before transferring them to the exchange.

Report: stable currency can benefit from the plight of Silvergate

Analysis based on this information:


A recent study conducted by Kaiko, a digital asset data provider, has shown that the closure of Silvergate’s real-time payment network could potentially push investors towards using stable currency in cryptocurrency transactions. Silvergate, a California-based bank catering to fintech and cryptocurrency clients, announced its decision to close its proprietary SEN (Silvergate Exchange Network) in March 2021.

The research report by Kaiko predicts that investors will now opt for using stable currency issuers to receive stable tokens and then transfer them to cryptocurrency exchanges. This shift in preference is due to the fact that the closure of the SEN network means investors will no longer be able to deposit US dollars directly into cryptocurrency exchanges associated with the network.

The use of stable currency in cryptocurrency transactions has gained significant momentum in recent years. Stablecoins are digital currencies with a fixed value that is pegged to a traditional currency, such as the US dollar, or a commodity. They enable investors to hedge against the volatility often associated with cryptocurrency investments while still enjoying the benefits of blockchain technology.

The report suggests that Silvergate’s decision to close its SEN network is likely to spur investors to gravitate more towards stable currency in cryptocurrency transactions, which could potentially help promote the mainstream adoption of stablecoins. This, in turn, could lead to a significant uptick in the use of stablecoins, which has already grown exponentially in recent years.

In conclusion, Silvergate’s decision to close its proprietary SEN network is likely to have a considerable impact on the cryptocurrency market. The preference for stable currency is likely to grow even further as investors seek ways to mitigate volatility in the market, and the use of stablecoins becomes even more popular. As such, financial institutions and businesses involved in the cryptocurrency ecosystem must keep an eye on these developments to remain relevant and competitive in the ever-evolving digital asset market.

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