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483 Virtual Currency Industry Players Bank at Silvergate Bank

483 Virtual Currency Industry Players Bank at Silvergate Bank

By the end of the third quarter of 2018 California based bank Silvergate Bank had $1.7 billion deposits under its name from its 483 crypto clients. The number represents a 323% rise in clients from a mere figure of 114 clients from September 30 2017.

The above figures were disclosed by Silvergate Bank when it was filing its application for an IPO filing with the US Securities and Exchange Commission (SEC). The IPO application was filed at the SEC on 16 November. Under its prospectus, Silvergate Bank is promoting its bank as a Banking Platform for Innovators. For its IPO Silvergate Bank is looking to raise $50 million under stock symbol SI in the New York Stock Exchange.

“A considerable amount of the noninterest-bearing deposits origin is from several clients in the cryptocurrency industry,” Silvergate bank states. “The bank explained further and said “the unique source of funding comes with numerous advantages compared to our counterparts in the traditional financial sector.” The deposits are invested into lending opportunities, investment securities and in interest-earning deposit at other banks. The above investments vehicles provide investors with attractive risk-adjusted returns.

In detail, the $793 million deposits in Silvergate Bank are coming from several investors. $573 million of the total amount is coming from VC funds investing in the crypto sector together with hedge funds. The two are institutional investors. On the other hand, the remaining $227 million is from a combination of other firms such as miners and new protocol developers.

Silvergate Network

In a bid to fully offer its service to its clients Silvergate developed Silvergate Exchange Network SEN in 2017. The latter is a virtual currency network that brings together cryptocurrency exchanges and investors. Through SEN Silvergate is putting in place systems to facilitate movement of US dollars between investors and cryptocurrency exchanges. It was first tested in 2017 with a few customers, but later on, in 2018 the system was open to all customers in the cryptocurrency sector.

Based in San Diego California Silvergate Bank is putting its resources to help develop financial infrastructure and top-notch solutions for the ever-growing cryptocurrency industry. Through its management and competent staff, Silvergate Bank is at the forefront of developing the best financial solutions. Apart from that with the development of SEN Silvergate Bank is placing itself at the forefront of providing financial services for the cryptocurrency industry.