‘Crypto bank’ Silvergate is gearing up for an IPO after strong digital-currency customer growth

Banks do not necessarily have to be crypto-hostile. On the contrary: An increasing number of banks are seeing the positive implications of blockchain technology, including the tokenization of assets. 

Transformation from a traditional bank into a global leader in the institutional management of assets in the crypto industry is rapidly taking place at Californian bank Silvergate. It is true that there are no details about the exact use of the new capital from the official IP filing on the IPO; Silvergate talks only about investing in “organic growth and business fundamentals.” However, given the bank’s explicit crypto-affinity, extending crypto services is more than likely.

The transformation from a traditional bank into a global leader in the institutional management of assets in the crypto industry is rapidly taking place at Californian bank Silvergate. It is true that there are no details about the exact use of the new capital from the official IP filing on the IPO; Silvergate talks only about investing in “organic growth and business fundamentals.” However, given the bank’s explicit crypto-affinity, extending crypto services is more than likely.

Silvergate has been in the middle of the crypto sector since 2013. As Xconomy reports, CEO Alan Lane got infected with the crypto virus and has kept the bank on track ever since. In 2014, Silvergate and the Digital Currency Group (DCG) gained a significant holding in the crypto ecosystem. DCG invests in crypto start-ups and holds shares in the news page CoinDesk. The fact that the bank has been focusing on customers from the crypto-ecosystem for so long now gives it a huge competitive advantage:

“Our ability to target these markets over the past five years provides us with a tremendous first mover advantage in the digital currency space. Cryptocurrencies are now the cornerstone of our business. “

Financial infrastructure increasingly important for cryptographic enterprises

Obviously, the bank has hit a nerve with its focus on crypto-sector companies, because despite the bear market, the number of its clients is skyrocketing. Overall, Silvergate comes to a remarkable 483 customers (as of September 30) of their crypto division. Compared to the previous year, the bank recorded an increase of 323 percent in this area. This is clear from the IPO document. All crypto customers put together therefore deposited approximately 1.7 billion US dollar with Silvergate.

The core business of Silvergate differs from traditional financial services providers in that it is not focused on traditional lending. Instead, the bank focuses on the deposit of non-interest bearing assets, which it then invests or invests in other financial institutions.

Much of the traditional lending industry behaves in a crypto-space, to say the least, passive to negative. Meanwhile, more and more institutions are finding their way to the front .

Let us help you be successful! —> (SUBSCRIBE)



Categories: Crypto Currency

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: