Crypto payment network BCBcrypto is accelerating its USD instant payment rail plans to support industry continuity in the wake of Silvergate’s settlement layer closure. IanAllison123 reports.
the BCB Liquidity Interchange Network Consortium , in mid-2020. It’s a real-time gross settlement system that does for euros, British pounds and Swiss francs what SEN did in the U.S. until recently for big crypto clients transacting in dollars.
It’s worth noting that NYC-based Signature Bank’s Signet, an equivalent to SEN, has to date been the next largest network for USD instant settlement and stands to fill some of the demand. That said, a BLINC dollar component has been in the works for about a year and is getting ready to launch, Landsberg-Sadie said.
“Obviously I’m going to try and bring that forward as quickly as possible,” he said in reference to news that Silvergate’s network is no longer running. “I’d like to say it could be live by spring, so we’ll do whatever it takes to make sure those who are stranded by SEN get some sort of continuity given the huge overlap of BCB and Silvergate clients.”
The key differences between BLINC and SEN is that the former is multicurrency and isn’t tied to a single credit institution, such as a Silvergate or Signature Bank, Landsberg-Sadie said. It was not designed to take deposits, he added, having been purpose built as a payment institution, providing onramps to a collection of banks in places like the U.K., Switzerland and Europe.
“It’s a decentralized model,” said Landsberg-Sadie. “What you have with Silvergate and Signature is a credit institution solution applied to what is primarily a payments problem. Silvergate’s troubles started when they allowed long-term bitcoin bets against short-term cash deposits, an impossible position to unwind in 2022’s crazy markets. BLINC funds are 1:1, unleveraged, un-rehypothecated, always precisely 1:1 with safeguarded funds.
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