Update on Unchained’s banking partnerships

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First published: 03/02/2023
| Last updated: 03/02/2023
| -- min read

Yesterday, one of our banking partners, Silvergate, announced that they were not able to file their 2022 annual financial statements and their 2022 fourth-quarter results in a timely manner, and they disclosed losses that potentially impact their ability to continue as a going concern.

While we use Silvergate as one of our banking partners, we have no lending or other credit relationship with the bank. Our operations with Silvergate are limited to processing payments from clients, which are covered in full and regulated by federal agencies that enforce mandates and requirements to maintain a functioning payment system and the reliability of electronic funds transfers.

Our team has been monitoring the situation with Silvergate closely over the last few months, and we’ve already been working behind the scenes to expand our banking relationships beyond Silvergate to work with banking partners that are dedicated to the success of Unchained and our clients.

Following Silvergate’s announcement, we do not expect there to be any interruption to any of our services. Loans and trading desk clients can continue to make payments using the usual methods, and we’ve instituted controls to limit the amount of funds at Silvergate such that exposure never exceeds FDIC deposit insurance amounts. We’ll also be reaching out with new banking details in due time.

Our decision to eliminate counterparty risk is embedded in every product and service we offer and is completely aligned to the ethos of bitcoin. Furthermore, our clients’ bitcoin held in collaborative custody with Unchained is and always will remain secure in cold storage and unaffected by events in the traditional financial system. If you have any questions, don’t hesitate to get in touch and we’ll be happy to help. 

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