Paxos Shields From Silvergate And SEN Network Failures
According to the tweet, Paxos has virtually no exposure to Silvergate and stopped using SEN network connectivity last week. Additionally, Paxos has cut bank transfers of Silvergate accounts.
1/ Statement from Paxos on Silvergate Bank: Paxos has virtually no exposure to Silvergate. Last week we discontinued SEN connectivity and wires into our Silvergate account and have continued processing outgoing withdrawals.
— Paxos (@PaxosGlobal) March 8, 2023
Paxos has explained that the decision to reduce its exposure to Silvergate was taken to protect its customers’ funds. As accredited institution management, Paxos has always focused on providing its clients with maximum security. The company has built banking redundancy into its platform, which allows it to switch quickly to other banking partners in the event of a disruption.
The decision by Paxos to distance itself from Silvergate comes at a time when the crypto industry is facing increased regulatory scrutiny. There have been concerns about the sector’s lack of oversight and regulation, and several governments are now taking steps to regulate cryptocurrency trading and usage. In this context, companies like Paxos need to comply with all relevant rules and guidelines.
Paxos is one of the most trusted and respected names in the crypto industry, and its stablecoin, PAX, has become one of the most widely used stablecoins in the world. The company has been at the forefront of efforts to bring greater stability and security to the cryptocurrency market. By reducing its exposure to Silvergate, Paxos is demonstrating its commitment to protecting its customers’ funds and ensuring that it complies with all relevant regulations.
The move by Paxos is likely to have a significant impact on the cryptocurrency industry. Silvergate is one of the cryptocurrency companies’ most important banking partners, and its loss as a partner could cause significant disruption. However, Paxos has built banking redundancy into its platform, which means that it should be able to switch quickly to other banking partners without causing significant disruption to its customers.
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