- BCB CEO Oliver von Landsberg-Sadie wants a framework for a dollar fiat-to-crypto transaction to release within the second quarter of 2023.
- BCB is the first crypto firm to receive an official payments license in the UK
- Landsberg-Sadie confirmed that the BCB payment system is a decentralized type
BCB Group, a UK-regulated payments processor that facilitates fiat-to-crypto transactions for clients, including crypto exchanges Kraken, Gemini, and Bitstamp, is stepping up efforts to add US dollar options to their offering to bridge the gap from the Silvergate Exchange Network (SEN) issues. CEO Oliver von Landsberg-Sadie confirmed in an interview with CoinDesk that the London-based BCB plans to expand its instant settlement network, the BCB Liquidity Interchange Network Consortium (BLINC), within the coming months.
The BLINC network offers instant settlements for currencies, including British pounds, euros, and Swiss francs, proving similar services already provided by SEN for large crypto clients transacting in dollars. In contrast, BLINC does not take deposits, nor is it tied to a single credit institution like its predecessors; instead, it provides a decentralized model with 1:1 funds that remain unleveraged and “un-rehypothecated” at all times with sturdy security.
Signature Bank’s Signet has been another top player for USD instant settlement but may be surpassed by BCB Group’s service soon, according to Landsberg-Sadie, who revealed his goal of launching it as quickly as possible to “provide continuity” for business owners impacted by SEN’s recent closure.
If BCB Group adheres to the regulatory laws of each country, especially in the United States, then it would become the most potent third-party payment service in the crypto industry alongside Signature. They may connect banks and decentralized projects in harmony for the betterment of customers seeking more straightforward transactions.
Silvergate Capital: A Quick Rundown
Crypto-based bank Silvergate Capital (SI) has been facing regulation and long-term financial integrity issues. JPMorgan analysts have expressed positivity, saying that Signature Bank will become more crucial in the coming years. With a competition that proved its strong foundation, SI continues to crumble.
Last week, SI shares crumbled to almost 60% after it failed to report its annual filing and additional losses in time. This has left many investors questioning its functionality within the following year. Crypto companies like Circle, Coinbase, Crypto.com, Gemini, Paxos, and BitStamp declared their separation from SI. Meanwhile, MicroStrategy, the most significant corporate holder of Bitcoin, also stated its concerns after a loan from Silvergate which may result in insolvency soon.
Due to the ongoing problems with SI, it cannot meet an extension on March 16 to file its annual report. During a filing with the SEC, SI explained that “recent changes have altered” its time to send the yearly message. The company has sold additional debt securities of around $4.3 billion in loans with the Federal Home Loan Bank of San Francisco.
With SI having a low chance of getting back up, only BCB Group and Signature remain the most vital providers for crypto companies.
