Bitcoin

In March 4, 2023 <a href="https://www.coindesk.com/policy/2023/03/03/silvergate-suspends-sen-exchange-network/" rel="noopener noreferrer nofollow">Silvergate announce </a>close the SEN platform institutions that used to move money to crypto exchanges.Silvergate Bank, which warned this week about its ability to remain in business, discontinued its SEN platform that institutions used to move money to crypto exchanges.“Effective immediately Silvergate Bank has made a risk-based decision to discontinue the Silvergate Exchange Network (SEN). All other deposit-related services remain operational,” the company said on its website Friday.SEN is a 24/7 instant settlement service that the bank&#39;s clients could use to conduct transactions between each other at any time, including nights and weekends.The bank counted a number of major crypto firms as its clients for the service, including Binance US, Kraken, Gemini and ErisX (prior to the latter&#39;s acquisition by <a href="https://blockchainmedia.id/bitcoin-etf-di-as-belum-lahir-cboe-niat-jual/" rel="noopener noreferrer nofollow">Cboe</a>).Silvergate has had a rough week, after disclosing on Wednesday that it would delay the filing of its annual report due to questions from its auditors.In the same notice, the bank admitted it was facing investigations from bank regulators and the U.S. Department of Justice, and said its ability to be a &#34;going concern&#34; over the next year may be in doubt.A number of prominent crypto clients bailed on the bank the next day, and its stock price fell nearly 60% before somewhat stabilizing on Friday.<h2 id="header-0">What is Silvergate Exchange Network (SEN)?</h2>The Silvergate Exchange Network (SEN) enables Silvergate Bank&#39;s digital currency and institutional investor clients to send U.S. dollars 24 hours a day, 7 days a week, 365 days a year between their Silvergate accounts and the accounts of other Silvergate clients.This can be done via <a href="https://www.silvergate.com/solutions/bank-apis" rel="noopener noreferrer nofollow">Silvergate Bank proprietary API</a> or their online banking portal, enabling near real-time transfers and immediate availability of funds. Participating in SEN requires an active banking relationship with Silvergate.Software developers need tools that provide access to financial information and the ability to automate business processes. Silvergate Bank RESTful JSON APIs are designed to give full access to clients data and become key building blocks within the technology stack.The APIs enable to inquire on extensive wire data to attribute deposits, understand payment patterns, and cross reference account histories. Clients can also automate accounting tasks and transfer money 24/7 in real time between the accounts and the accounts of other Silvergate clients.<h2 id="header-1">This is how SEN work in details</h2>Silvergate Exchange Network (SEN) is a proprietary payment network created by Silvergate Bank to facilitate the transfer of fiat currency between cryptocurrency exchanges and other institutional customers. Here&#39;s how it works:<ul><li>Customer onboarding: Institutions interested in using SEN must first apply for an account with Silvergate Bank. Once approved, they are assigned a unique identifier, known as a SEN ID, which allows them to transact on the network.</li><li>Deposit and withdrawal: When a customer wants to deposit fiat currency onto a cryptocurrency exchange, they first wire the funds to their account at Silvergate Bank. Once the funds are received, the customer can then use their SEN ID to instruct the exchange to credit their account with the appropriate amount of cryptocurrency.</li></ul>Conversely, when a customer wants to withdraw fiat currency from a cryptocurrency exchange, they first sell their cryptocurrency for fiat currency on the exchange. The exchange then sends the fiat currency to the customer&#39;s account at Silvergate Bank, which they can then withdraw via wire transfer.<ul><li>Real-time settlement: Transactions on SEN are settled in real-time, meaning that funds are immediately transferred between accounts once a transaction is initiated. This allows institutions to quickly and efficiently move funds between cryptocurrency exchanges and other institutional customers.</li><li>24/7 availability: SEN operates 24/7, which allows institutions to transact on the network at any time, regardless of the time zone or location.</li><li>Security: SEN is designed with security in mind, using advanced encryption and authentication protocols to ensure that transactions are secure and that customer information is protected.</li></ul>In summary, SEN provides a fast, efficient, and secure way for institutions to transfer fiat currency between cryptocurrency exchanges and other institutional customers. By streamlining the process of depositing and withdrawing fiat currency, SEN helps to facilitate the growth of the cryptocurrency ecosystem.<h2 id="header-2">What is institutional customers in cryptocurrency industries?</h2>Institutional customers in the cryptocurrency industry refer to large organizations or entities that transact in large volumes of cryptocurrency or provide services related to cryptocurrencies. These organizations can include:<ul><li>Cryptocurrency exchanges: These are platforms that allow users to buy, sell, and trade cryptocurrencies. Institutional customers in this context could be large trading firms, hedge funds, or other financial institutions that trade in cryptocurrency.</li><li>Investment funds: Institutional investment funds, such as pension funds or endowments, may hold cryptocurrency as part of their investment portfolios.</li><li>Payment processors: Payment processors that handle cryptocurrency transactions, such as BitPay or Coinbase Commerce, may serve institutional customers that use cryptocurrencies as a means of payment.</li><li>Mining companies: Cryptocurrency mining requires a significant investment in hardware and infrastructure, and as such, institutional customers may be involved in the mining industry.</li><li>Custody providers: Institutional customers that hold large amounts of cryptocurrency may use the services of custody providers that specialize in storing and securing cryptocurrency.</li></ul>Institutional customers in the cryptocurrency industry typically transact in large volumes, which can have a significant impact on cryptocurrency markets. As such, they are an important part of the ecosystem and are often the target of specialized services and products, such as the Silvergate Exchange Network (SEN), which is designed to facilitate the transfer of fiat currency between cryptocurrency exchanges and other institutional customers. []

How Silvergate Exchange Network (SEN) Work that Used by Binance, Gemini and Other Big Crypto Exchanges?

विषयसूची

blockchainmedia.id

6 मार्च 2023 को प्रकाशित अन्य लेख

HYVE Starts Supporting Ontology: A Game Changer for the Decentralized Freelance Industry

Binance Launches Joint Anti-Scam Campaign

[Partnership] NEOPIN signs partnership with Ozys

Lido Denies Rumors as Podcaster Apologizes for Spreading False Information

What is SingularityNET? Unleashing the Power of AI - Ratings & Analysis

Multichain DEX Platform PancakeSwap Announces Release of Version 3

रोजाना क्रिप्टो अपडेट पाने के लिए हमारे मुफ्त न्यूजलेटर से जुड़ें!