- Silvergate’s cryptocurrency services have gathered increased traction over the past quarter.
- With increases in net income, customer acquisition, leveraged commitments and deposits, Silvergate managed to combat a downturn of overall transactional volume.
- Silvergate also announced the closure of its acquisition of Diem assets, the previous unsuccessful stablecoin project of Meta Platforms, formerly known as Facebook.
Silvergate Capital Corporation (NYSE: SI) saw customers deposit an average of $14.7 billion worth of bitcoin and cryptocurrency to the firm’s platform during the first quarter of this year, up from $13.3 billion during Q4 2021, the company said in its quarterly results report released Tuesday.
“We started off 2022 on a strong note, driven by the power of our platform and continued progress on our strategic initiatives,” said Alan Lane, president and CEO of Silvergate, in a statement.
As the company positions itself as a viable banking solution for holders of and service providers for assets like bitcoin, the increasing number of customers utilizing the Silvergate Exchange Network (SEN) continues to showcase the market demand from institutional buyers. SEN had over 1,500 customers by the end of last month, Silvergate said, a 27% increase year-over-year as the platform had a little over 1,100 clients in March 31, 2021.
SEN enables real-time U.S. dollar and euro settlement between counterparties, in addition to faster trading, automated funds distribution, and data analysis. Its clients include FTX, Coinbase, Bitstamp, Kraken, and the company behind the USDC stablecoin, Circle.
“I’m particularly pleased with our first quarter results when you consider that this was one of the most challenging periods for the broader crypto ecosystem since the beginning of the pandemic,” Lane said.
A cautious cryptocurrency market resulted in a 35% decrease of U.S. dollar transfers on SEN, bringing Q4 2021 numbers of $219.2 billion down to $142.3 billion during…
