Silvergate’s Bitcoin-Backed Lending Product Grew 80% in the Last Quarter
Silvergate Bank continued to add a steady drip of crypto customers in Q2 2020 but its issuance of bitcoin-collateralized loans is what stood out.
The custodian began offering cash loans collateralized by bitcoin last December but is now adding Silvergate customers to the mix.
Binance.US has joined the Silvergate Exchange Network (SEN), a 24/7 instant settlement network operated by Silvergate Bank.
The majority of the bank’s new deposits came from cryptocurrency exchange clients.
Silvergate Bank added $586 million in new deposits from firms and individuals in the cryptocurrency industry in the third quarter of 2020.
All-time transaction volume on the Silvergate Exchange Network (SEN), a fiat pathway into bitcoin markets, has reached $100 billion.
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.