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Closure of SEN to Boost Use of Stable Coin in Cryptocurrency Transactions

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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 set…

Closure of SEN to Boost Use of Stable Coin in Cryptocurrency 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.”

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

Interpretation of the news:


Kaiko’s report released on March 7 revealed that Silvergate Capital had decided to shut down its widely-used instant settlement service (SEN) among large investors. This move is expected to have an impact on the cryptocurrency market by promoting the use of stable coins in encrypted transactions. The report suggests that traders will no longer prefer bank channels to deposit dollars in the cryptocurrency exchange but instead transfer funds to the stable coin issuer to obtain stable coins, which can then be deposited in the exchange.

The demise of SEN is expected to have a significant impact on the market, particularly the role of stable coins and their issuer in cryptocurrency transactions. The report indicates that stable coins may become more common among traders, thereby making it more necessary for issuers to access cryptocurrency banks. This poses additional risks as it makes the risk even more concentrated.

The report has a significant implication for the cryptocurrency market as the use of stable coins is expected to increase. Stable coins are cryptocurrencies designed to have less volatility than other cryptocurrencies. Their prices are usually pegged at a fixed rate to assets such as fiat currencies or gold. The use of stable coins is expected to bring more stability to the market, which will be a welcome development for investors.

As the use of stable coins increases, the role of cryptocurrency banks and their associated risks are expected to increase as well. This could potentially create a new set of challenges for the cryptocurrency market. In conclusion, the closure of SEN is likely to promote the use of stable coins in encrypted transactions while creating new challenges for cryptocurrency banks.

In summary, the report suggests that the closure of SEN will have a ripple effect in the cryptocurrency market. The increased use of stable coins will bring stability to the market, a welcome development for investors. However, this development will also come with its own set of challenges, particularly related to the role of cryptocurrency banks in the market.

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