Banking System Mostly Sheltered From Silvergate Crypto Disaster

A rare run on a US bank is unfolding at the moment as crypto-focused Silvergate plunges. But the damage to the broader financial system is likely contained, as the trouble facing Silvergate is particular to the bank and mostly limited to its customers and other crypto-linked firms.

Shares are sinking after Silvergate raised concerns about its viability, recalling worries about contagion from the collapse of Sam Bankman-Fried’s FTX. A host of cryptocurrency firms, including Coinbase and Galaxy Digital, say they won’t accept or initiate payments through Silvergate, in an exodus which threatens the bank’s SEN network (its key source ...