UPDATE (27, August 22:45 UTC): This article initially stated the Silvergate Exchange Network provides a lending service. That statement is erroneous and has been corrected.
Gemini, a cryptocurrency exchange co-founded by Tyler and Cameron Winklevoss, announced it will join the USD payments platform, Silvergate Exchange Network (SEN).
Through the network, Gemini’s institutional clients are now able to transact in U.S. dollars “24 hours a day, 7 days a week, and 365 days a year,” according to a statement made Aug. 27. This activity was previously prohibited by the traditional hours of operation for banks, which “shackled” fiat withdrawals and deposits.
By integrating with the cloud-based SEN API, the exchange can form counterparty relationships with other members of the network to make instantaneous transfers. Silvergate Bank, an industry financial service provider, supports the network of digital currency exchanges and digital currency investors, to facilitate the movement of U.S. dollars between participants.
According to the bank’s Form S-1 filing:
“The SEN has a powerful network effect that makes it more valuable as participants and utilization increase, leading to 374% growth in SEN transaction volumes in the first six months of 2019 compared to the first six months of 2018.”
The SEN launched in early 2018 and has since enrolled approximately 77 percent of Silvergate’s eligible commercial clients.
Silvergate serves some of the cryptocurrency industry’s biggest firms including Coinbase, Bitstamp, Genesis Trading and Blocktower Capital.
Cameron and Tyler Winklevoss image via Shutterstock