Wedbush analyst David Chaverini removes crypto bank Silvergate Capital (NYSE:SI) given a "near 100%" likelihood that the U.S. will adopt a central bank digital currency, which could negatively impact the addressable market for the company's planned stablecoin, he writes in a note to clients. Shares of SI dip more than 4% in pre-market trading as bitcoin (BTC-USD -2.1%) falls to $40K support. Recall in mid-May of last year when the bank said it will be the exclusive issuer of Diem USD, a U.S. dollar-backed stablecoin. But it seems that the launch of this stablecoin will be "dwindled" given the President's Working Group recommends that stablecoin issuers should have limited commercial affiliation. Still, the analyst maintains his Outperform rating based on the bank's "leadership position in its high-growth core market of facilitating real-time USD transfers between crypto hedge funds and crypto exchanges," the note says. Wedbush's Outperform rating disagrees with the Neutral Quant
Why Story (IP) Is Up Today?
