Silvergate Bank Sees 40% Increase in Deposits From Digital Currency Customers
Silvergate Bank added $586 million in new deposits from firms and individuals in the cryptocurrency industry in the third quarter of 2020.
Cryptocurrency's viability as an investment may not be in its value as an asset but in the way the financial world is evolving because of it.
Signature's $10 billion in deposits from crypto businesses is now double that of rival Silvergate.
The custodian began offering cash loans collateralized by bitcoin last December but is now adding Silvergate customers to the mix.
The majority of the new deposits came from cryptocurrency exchange clients.
Binance.US has joined the Silvergate Exchange Network (SEN), a 24/7 instant settlement network operated by Silvergate Bank.
Silvergate Bank added 46 crypto customers in the first quarter and saw fee income and deposits increase from those customers because of “Black Thursday,” according to its earnings report released before market open on Wednesday.