Silvergate Bank Now Provide Services to Over 500 Crypto Companies
According to a recent report, a California state-chartered bank based in San Diego, Silvergate Bank now render banking services to more than 500 digital assets companies. The bank began its crypto-related business in 2013 and it is considered one of the very few U.S. based “bitcoin-friendly” banks.
Silvergate Files Revised IPO Prospectus
A revised IPO prospectus was filed with the Securities and Exchange Commission (SEC) in the U.S. by Silvergate Capital Corp., the parent of Silvergate Bank. The figures detailed in the document revealed that Silvergate’s accommodation of the virtual currency industry has continued to help it with the attraction of new clients.
As at 31st of December, 2018, the bank had a total of 542 clients working in the cryptocurrency industry. This shows an increase of more than 12% from the 483 clients which it reportedly had in the third quarter of the year. Also, by the end of 2018, the bank had 232 prospective clients who were going through various stages of its onboarding process which includes extensive regulatory compliance due diligence.
It’s 542 customers include a group of 37 cryptocurrency exchanges out of which 5 are U.S. based digital exchanges like Circle, Genesis, and Bitstamp. Another group is 142 startups which are developing new protocols, applications, and platforms; mining operations and providers of other services including Capo and Paxos. The biggest group of customers consists of 363 institutional investors such as venture capital, private equity funds, traditional asset managers, and family offices, these include Kenetic and Polychain Capital.
According to the total client deposits reported by Silvergate Bank, the smaller group of 37 exchanges is dragging down the financial figures.
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.
Then as at 31st of December, these client deposits figures changed to $618.5 million,$577.5 million and $273.9 million respectively.