Bitcoin-Friendly US Bank Silvergate Now Serves Over 500 Crypto Companies
Silvergate Bank, headquartered in San Diego as a California state-chartered bank, started its cryptocurrency-related business in 2013. Now over 500 companies from the digital assets industry are using its services as one of the very few “bitcoin-friendly” banks based in the U.S.
Silvergate Files Amended IPO Prospectus
Silvergate Capital Corp., the parent of Silvergate Bank, filed an amended IPO prospectus with the U.S. Securities and Exchange Commission (SEC) on March 18 with updated data about its operation. According to the figures presented in the document, the bank’s openness to the cryptocurrency industry has continued to help it with attracting new customers.
In total, Silvergate had 542 clients working in the digital assets sector as of December 31, 2018, which is up over 12 percent in three months from the 483 clients it reported as of the third quarter of the year. The bank also already had 232 prospective digital currency customers by the end of 2018, going through various stages of its onboarding process, which includes extensive regulatory compliance due diligence.
Exchanges Drag Figures Down
Among its 542 clients, Silvergate Bank lists a group of 37 digital currency exchanges, including the five largest U.S. domiciled digital currency exchanges, such as Bitstamp, Circle and Genesis. The second biggest group is 142 companies developing new protocols, platforms and applications; mining operations and providers of other services, including Xapo and Paxos. The biggest group of clients is 363 institutional investors such as hedge funds, venture capital funds, private equity funds, family offices and traditional asset managers, including Kenetic and Polychain Capital.
Interestingly, the smaller group of 37 exchanges is dragging down the financial figures in terms of total client deposits that Silvergate Bank reported. As of September 30, 2018 it had $792.9 million in deposits from digital currency exchanges, $572.7 million in deposits from institutional investors and $227.5 million from the group of other companies. By December 31, these client deposits figures changed to $618.5 million, $577.5 million and $273.9 million respectively.
What do you think about the latest figures from Silvergate? Share your thoughts in the comments section below.
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