COIN - Galaxy Digital Paxos said to no longer use Silvergate Capital for transfers

Cryptocurrency financial services firm Galaxy Digital ( OTCPK:BRPHF ) and stablecoin issuer Paxos Trust Company will stop accepting or initiating payments via Silvergate Capital ( NYSE: SI ), as the crypto-focused bank assesses whether it has the ability to continue as a going concern, Bloomberg reported Thursday.

On the same day, Coinbase Global ( COIN ), the largest crypto exchange by trading volume, said it will no longer use Silvergate ( SI ) for transfers. Instead, it will facilitate client cash transactions with its other banking partners , including Signature Bank ( SBNY ).

Michael Novogratz-founded Galaxy Digital ( OTCPK:BRPHF ) took the action to assure assets of clients and the firm are safe, a company spokesperson told Bloomberg in an emailed statement .

Paxos, the issuer of Binance-branded BUSD ( BUSD-USD )( until recently ) and pax dollar ( USDP-USD ) stablecoins, took to Twitter, saying it "has discontinued all SEN transfers and wires to our Silvergate account," adding it will keep processing all outgoing payments.

Like Coinbase ( COIN ), Paxos "does not have any material exposure to Silvergate ( SI )," it noted.

Shares of SI plummeted 53.1% in afternoon trading, while BRPHF and COIN retreated 6.3% and 6.1% , respectively.

Seeking Alpha contributor Bram de Haas earlier warned "its time to get out" of SI after the bank late Wednesday said its annual report will be delayed and new losses have surfaced .

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