Silvergate Capital Corporation, a publicly traded company, and its wholly-owned subsidiary, Silvergate Bank, today announced financial results for the first quarter of 2020.
According to the report, Silvergate’s digital currency initiative reached new highs with an increase of 49 digital currency customers, bringing the total number to 850. The bank has gained 617 new clients year-over-year.
Throughout the quarter, Silvergate moved prospective digital currency customers through its pipeline as more institutions and businesses gained exposure to crypto assets such as Bitcoin and Ethereum, conducting crypto-related transactions, deposits and withdrawals.
There were 31,405 transactions on the Silvergate Exchange Network for the three months ending March 31, 2020. The global payments platform allows the bank’s digital currency and institutional investor clients to send US dollars 24 hours a day, 7 days a week, 365 days a year between their Silvergate accounts and the accounts of other clients.
Silvergate’s 24/7 approach has made it unique in the banking world, allowing its clients to leverage the on-demand, always-open crypto markets where transactions are continuous and go beyond both regular banking hours and the operating hours of traditional stock exchanges.
The strategy has allowed the bank to develop a thriving network, increasing SEN transactions during Q1 to $17.4 billion, up from $9.6 billion in the fourth quarter of 2019.
Alan Lane, president and chief executive officer of Silvergate, says the company has quickly become the leading provider of digital currency infrastructure through the development and growth of its global payments platform.
“Our first quarter results demonstrate our continued success expanding the SEN network as we grew our net customer count to 850 from 804, at year end, while maintaining a pipeline of more than 200 potential customers. Additionally, we experienced transaction growth in excess of 100% as a result of the increased volume of Bitcoin trades combined with the strong network effect of the SEN.”
With $2.3 billion in total assets, the California-based firm is one of the few US banks to serve crypto clients. It went public on the New York Stock Exchange in November of 2019.
Earlier reports indicate that the crypto-friendly bank has counted several industry leaders among its client base including crypto exchanges Coinbase, Gemini, Kraken, Bitstamp and Bittrex.
Lane says the bank is on track to expand its product offerings.
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