Kaiko report: The troubled Silvergate may improve the role of stable currency in encrypted transactions

On March 7, Kaiko, a market research company, said in a report released on Monday that the troubled Silvergate Capital decided to close its popular instant settlement service SEN among large investors, which will improve the role of stable currency and its issuer in encrypted transactions. Kaiko’s report said: “With the demise of SEN, stable currency may become more common among traders.” Kaiko predicted that traders would no longer use bank channels to deposit dollars in the cryptocurrency exchange, but transfer funds to the issuer of stable currency to obtain stable currency, and then deposit stable currency in the exchange. The report added: “But the problem is that the issuer of the stable currency still needs to access the cryptocurrency bank, so now the risk is further concentrated.”

Interpretation of this information:

Market research company Kaiko recently released a report stating that Silvergate Capital’s instant settlement service SEN, popular among large investors, will be closing. This closure is expected to increase the use and importance of stable currency and its issuers in encrypted transactions. Kaiko forecasts that traders will move away from bank channels to deposit dollars in cryptocurrency exchanges and instead transfer funds to stable currency issuers to obtain stable currency, which can then be deposited in exchanges. However, the report also notes that stable currency issuers still need access to cryptocurrency banks, which concentrates risk further. The three keywords that summarize this message are: Silvergate Capital, stable currency, and cryptocurrency banks.

The closure of SEN highlights the unpredictable and ever-changing nature of the cryptocurrency industry. While SEN was popular among large investors, its closure is expected to have a significant impact on the industry by increasing the use and importance of stable currency and its issuers. The report predicts that traders will move away from traditional bank channels for depositing dollars in cryptocurrency exchanges and instead opt for stable currencies. This shift could lead to a considerable increase in demand for stable currency, pushing the industry in a different direction.

Stable currency has been a subject of interest for some time, with many investors seeking a more stable and secure way to invest in cryptocurrencies. This demand has, in turn, led to the rise of stable currencies and their issuers. As the use of stable currencies increases, their issuers become increasingly important in the encrypted transaction process. However, the report notes that the stable currency issuers still need access to cryptocurrency banks, which concentrates risk further.

Cryptocurrency banks remain an essential part of the industry, as they provide a bridge between traditional banking and the cryptocurrency world. However, Kaiko’s report highlights the growing concentration of risk in the industry, as stable currency issuers rely on access to cryptocurrency banks. As the popularity of stable currencies continues to grow, there may be a need for further infrastructure to support the industry and ensure its stability.

In conclusion, the closure of SEN is expected to have a significant impact on the cryptocurrency industry, leading to increased use and importance of stable currencies and their issuers. The industry’s reliance on cryptocurrency banks also highlights the need for further infrastructure to support stability and reduce risk. The three keywords that best summarize this message are: Silvergate Capital, stable currency, and cryptocurrency banks.