Paxos issued a statement on Silvergate Bank: the platform has built-in bank redundancy

It is reported that Paxos, the issuer of the US dollar stable currency BUSD, released a statement on Silvergate Bank on social media, which said that Paxos had almost no contact with Silvergate Bank. Last week, we stopped SEN connection and wire transfer to the Silvergate account of Paxos, and continue to process outgoing withdrawals. As a regulated institution, Paxos has always focused on protecting customers’ funds, and the platform has built-in banking redundancy.

Interpretation of this information:

In a recent statement, Paxos, the issuer of the US dollar stable currency BUSD, revealed that it has had minimal contact with Silvergate Bank. The company noted that it has recently stopped SEN connection and wire transfer to Silvergate Bank while continuing to process outgoing withdrawals. Paxos also underlined its commitment to protecting customers’ funds through built-in banking redundancy.

While the statement appears straightforward, it raises some questions about the relationship between Paxos and Silvergate Bank. For instance, why has the company decided to limit its interaction with Silvergate Bank, and what impact could this move have on BUSD users? It’s also unclear whether this is a temporary measure or if Paxos intends to sever ties with the bank altogether.

One possible explanation for the reduced contact could be related to the recent volatility in the cryptocurrency market. Stablecoins like BUSD are designed to minimize price fluctuations, and Paxos’ decision may be part of its efforts to ensure the stability of BUSD amid market turbulence. Alternatively, there may be some regulatory or compliance issues that have led to the reduction in contact between the two entities.

Regardless of the reason behind Paxos’ decision, it’s reassuring to see the company openly communicating with its users about any changes that may affect them. The company’s emphasis on protecting its customers’ funds is also noteworthy, particularly in an industry that has faced numerous high-profile hacks and scams over the years.

In summary, Paxos, the issuer of BUSD, has released a statement announcing that it has nearly no contact with Silvergate Bank. The company recently stopped SEN connection and wire transfer to Silvergate Bank, but it will continue to process outgoing withdrawals. Paxos has emphasized its commitment to protecting customers’ funds through built-in banking redundancy.