Silvergate Bank Faces Wire Transfer Outage

Silvergate Bank, a crypto-focused United States bank, is facing certain inbound wire transfer issues.

First reported by The Block, the bank is facing issues due to an outage of its payment processor Finastra that connects the bank with Fedwire, the real-time US banking network settlement system.

This has crippled the bank’s inbound from clients, while it is processing all outbound payments manually through its “secondary processing plans.”

The report also detailed that around 200 million wire transfers are still in line at the Fed for completion.

“Our trading partners send us money on Friday so they have funds on the platform ready to transfer to OTC desks over the weekend in case there are opportunities over the weekend to trade, but for those folks with money on the platform, their accounts are working and are just fine,” Alan Lane, CEO of the bank, told the publication.

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Banking services to crypto

Headquartered in California, Silvergate changed its business plan to specifically provide banking services to the crypto companies, most of which, otherwise, struggle to receive even basic banking facilities.

As seen on the last earning report of the bank, it serves over 800 crypto companies including major players like Gemini and Kraken.

However, on a positive note, the CEO revealed that the outage did not affect its SEN platform, which is the bank’s proprietary network of crypto exchanges and investors.

“It is painful, I don’t want to minimize it,” Lane added. “While we are obviously extremely disappointed with our service provider, it is important for all existing Silvergate clients to know: Their funds are safe.”

Earlier this year, Silvergate, along with crypto exchange Bitstamp, launched a Bitcoin leverage product, which is a part of its SEN network.

Source: CryptoCurrency – Finance Magnates

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