Digital Asset Capital seeks help from Swiss Bank due to the influence of Silvergate

It is reported that Digital Asset Capital is seeking the help of Swiss Bank to fill the gap caused by the use of Silvergate system. Digital Asset Capital Management uses Silvergate’s 24-hour real-time network to transfer funds into and out of the platform of Coinbase Global. However, such exchanges as Coinbase, Crypto.com and Gemini will no longer accept or initiate payments through Silvergate.

Interpretation of this information:

The recent announcement from Digital Asset Capital that they are seeking assistance from Swiss Bank to cover the gap caused by Silvergate’s system change is indicative of the volatility and complexity present in cryptocurrency markets. Digital Asset Capital Management is known to use Silvergate’s 24-hour real-time network to move funds in and out of the Coinbase platform. However, several major crypto exchanges have now announced that they will no longer accept or initiate payments through this system.

The move by Coinbase, Crypto.com, and Gemini to discontinue the use of Silvergate for transferring funds, raises some important questions about the future of cryptocurrency exchanges. These exchanges are some of the largest and most well-known in the industry, which means that their absence from the Silvergate network is likely to have a significant impact on the broader cryptocurrency ecosystem.

The reason why Coinbase et al. have stopped using the Silvergate system is not entirely clear. However, it is possible that the banks are tightening their controls around cryptocurrency-related activities due to regulatory scrutiny. This could be a response to the ongoing attempts by governments and regulators around the world to bring cryptocurrency activities under their purview.

This news is a worrying sign for Digital Asset Capital Management, as it will need to find alternative ways to transfer funds in and out of Coinbase if it wants to continue its operations. The fact that they are seeking assistance from Swiss Bank suggests that it is struggling to find solutions by itself.

The impact of these changes could also extend beyond Digital Asset Capital Management to other companies that use Silvergate’s system. If more financial institutions follow the lead of Coinbase, Crypto.com, and Gemini, they will also have to find alternative solutions for transfers. This could lead to a period of instability and volatility in the cryptocurrency industry.

In conclusion, this announcement highlights the ongoing uncertainty facing cryptocurrency markets. The lack of regulatory clarity regarding cryptocurrencies makes it difficult for financial institutions and companies to navigate the sector. The move away from Silvergate by some of the largest exchanges in the world is indicative of the challenges facing the growing industry. It remains to be seen how these developments will impact the wider crypto ecosystem in the coming months.