U.K.-based cryptocurrency exchange CEX.io has joined the Silvergate Exchange Network (SEN), the payment rail connecting major customers of Silvergate, the go-to bank of the crypto space.
In an interview with CoinDesk, Steve Gregory, CEX.io’s global chief operating officer and chief compliance officer of its U.S. subsidiary, called Silvergate “the gold standard” when it comes to U.S. crypto compliance, and said joining SEN meant being included in a kind of institutional crypto “club”.
By participating in SEN, CEX.io is connected directly to big institutional crypto players like Coinbase Prime, Cumberland, Kraken OTC, BitStamp, Jump and Circle, to name a few.
CEX.io, which began offering services to US customers in 2015, established a headquarters in Jersey City, NJ, and now holds some 17 state licenses to operate its exchange. The company has 250 staff and operates in 180 countries.
He told CoinDesk:
“We are in the club now. Silvergate is the biggest bank in the space and with the SEN and we can facilitate trades to some of those larger institutions that are members.”
SEN provides Silvergate’s large institutional clients an instant fiat payment rail, 24 hours a day, seven days a week. This means if a proprietary trading house such as Cumberland, for example, wants to move a few million dollars to CEX.io, this can be done without using a wire transfer.
Silvergate’s internal online banking uses an API to transfer the funds instantly on an internal ledger.