Crypto market trades with risk without Silvergate’s ($SI) SEN network

The market for digital assets is coming off a turbulent year with a number of high-profile explosions. Now, two closures in the banking industry — SVB Finanskonsern’s Silicon Valley Bank and Silvergate Capital Corp. – has set in motion a new set of stress.

SVB’s failure triggered a knock-on effect in the crucial stablecoin market after the digital-asset giant Circle Internet Financial Corp., one of the largest issuers of the widely used tokens known for their perceived security, disclosed that had $3.3 billion in reserves with the bank. The news caused Circle’s token, the USD Coin, to fall below its intended 1-for-1 peg to the dollar, sending a shock through the market.