In the world of cryptocurrencies, Silvergate Bank was one of the most well-known and respected players. The bank was a crucial player in the cryptocurrency industry, offering services to some of the biggest names in the space. However, recent events have seen the bank’s fortunes take a turn for the worse, and many are now wondering if this once-great institution is on the brink of collapse. For the time being, it has opted to close down its Silvergate Exchange Network (SEN), which was utilized by institutional investors to transfer funds to cryptocurrency exchanges at any time of the day. As a result, many crypto exchanges suspended USD transfers. However, the macro conditions are not affecting Bybit as it has developed its own debit card by partnering with payment giant Mastercard to facilitate users purchasing crypto assets.
Bybit Comes Up With Debit Card After Suspending USD Deposit
Leading crypto exchange Bybit plans to introduce a debit card that enables users to make payments and withdraw cash using their cryptocurrency holdings. This new offering, called the Bybit Card, will function through the Mastercard network and will enable fiat-based transactions by debiting cryptocurrency balances when used to pay for goods and services. The service will commence with the release of a complimentary virtual card for online purchases, with physical debit cards slated to become available by April 2023.
Users’ accounts with Bitcoin, Ethereum, Tether, USD Coin, and Ripple (XRP) balances will be compatible with the service. When making payments, the balances of these select cryptocurrencies will automatically convert to euros or pounds, contingent on the user’s country of residence.
The amount of ATM withdrawals and global payments will be restricted to the combined cryptocurrency holdings in a user’s Bybit account. These cards will be distributed by Moorwand, a payment solutions provider located in London.
Financial Crisis At Silvergate Forces Crypto Exchanges To Suspend USD Deposit
Bybit, the cryptocurrency exchange platform, has announced a temporary pause on bank transfers, including SWIFT payments, for US dollar-denominated deposits and withdrawals. According to the company’s website, dollar wire deposits have already been put on hold, and withdrawals will cease on March 10. Bybit attributed the decision to “service disruptions from our endpoint processing partner.” This move has forced Bybit to introduce its crypto debit card to allow users to continue adding crypto to their portfolio despite the halt in USD deposits.
Ben Zhou, co-founder and CEO of Bybit said, “Bybit users will be able to access and manage their funds faster, more securely, and more conveniently. By launching Bybit Card, we are creating a full 360-degree journey for our users, offering next-level reliability, products, and opportunities. We are confident that these innovative payment solutions will improve people’s lives and are a step towards a brighter future for crypto and finance.”
This is a significant partnership for Mastercard to help crypto users amid Silvergate’s financial crisis despite fake news on its crypto expansion plans. Christian Rau, Senior Vice President at Fintech and Crypto of Mastercard Europe, said, “Mastercard enables customers, merchants, and businesses to move digital value — traditional or crypto — however they want, with the confidence that they are doing so safely and securely. With launches like this, we’re excited to continue to innovate in payments by making digital assets more accessible across the ecosystem.”
The introduction of the Mastercard-powered debit card is a positive development for Bybit, as it allows the company to continue offering its users a convenient and reliable service. It also shows that the company is committed to adapting to the changing landscape of the cryptocurrency industry.