Silvergate, a US-based bank that bridged the gap between the banking system and the crypto world, collapsed last week after recording historic losses. Prior to its collapse, the bank provided several African fintechs with solutions that powered international banking and dollar-denominated remittances. Fintech startups such as Payday, Grey, and Vella are among Silvergate’s African clientele who are now searching for new banking partners as their customers remain waiting. Payday has experienced difficulty processing users’ dollar inflow, which has left some customers frustrated. However, a Payday employee confirmed that the company has severed ties with Silvergate and has already found an alternative banking partner. Similarly, Grey, a fintech startup that powers international digital banking, has estimated that it would take until March 21 before all USD account functionalities are restored for users. The silver lining in Silvergate’s shutdown is that depositors’ funds were fully paid out, which means that affected crypto companies and fintechs in Africa are not witnessing a replay of the FTX saga.

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