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Paxos and Silvergate Bank: A Break In Connection?

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It is reported that Paxos, the issuer of the US dollar stable currency BUSD, released a statement on Silvergate Bank on social media, which said that Paxos had…

Paxos and Silvergate Bank: A Break In Connection?

It is reported that Paxos, the issuer of the US dollar stable currency BUSD, released a statement on Silvergate Bank on social media, which said that Paxos had almost no contact with Silvergate Bank. Last week, we stopped SEN connection and wire transfer to the Silvergate account of Paxos, and continue to process outgoing withdrawals. As a regulated institution, Paxos has always focused on protecting customers’ funds, and the platform has built-in banking redundancy.

Paxos issued a statement on Silvergate Bank: the platform has built-in bank redundancy

Analysis based on this information:


Paxos, the issuer of the US dollar stable currency BUSD, has released a statement on social media regarding its relationship with Silvergate Bank. The statement suggests that Paxos has had almost no contact with the bank and that last week they stopped SEN connection and wire transfer to the Silvergate account altogether. However, outgoing withdrawals continued to be processed.

This news has caused speculation on whether there has been a rift between the two institutions. Paxos, a regulated institution, has always focused on protecting its customers’ funds, and the platform has a built-in banking redundancy. As such, it is understandable that they would distance themselves from any perceived risks.

On the other hand, Silvergate Bank has been an essential partner for Paxos in its efforts to establish a more stable digital currency ecosystem. As one of the few banks that have actively sought to work with digital currency issuers, Silvergate has played a crucial role in helping Paxos build a more robust BUSD infrastructure.

There is much speculation about the reasons behind the sudden break in connection between the two institutions, including the possibility that Paxos could be exploring other banking partners. While this may be possible, it is worth noting that Silvergate Bank has been an instrumental partner for Paxos and that any change would involve significant risk.

From the information we have, it is difficult to determine precisely what is happening between Paxos and Silvergate Bank. However, it is essential to note that this news is significant for the development of the BUSD market, and both institutions will have to navigate the situation carefully to maintain their reputations and relationships with their customers.

In conclusion, while we may not know precisely what is happening behind the scenes, we can be sure that Paxos and Silvergate Bank will have to work together to resolve any issues and continue their important work in building a more robust and stable digital currency ecosystem.

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