Silvergate Bank

History

2023

Liquidation of the bank

In March 2023, Silvergate capital curtails operations and liquidates the bank. The bank was a fiat bridge for many crypto companies.

Closing the SEN payment network

In March 2023, Silvergate Bank announced the closure of its own payment network SEN after a massive boycott by crypto companies. SEN is a network of internal payments developed by the bank, which customers, in particular crypto exchanges, used to make transactions with each other.

Shares collapse 57% on bankruptcy rumors

In March 2023, Silvergate intermediary bank ceased cooperation with large crypto exchanges. There were rumors about his bankruptcy, his shares collapsed by 57%.

2019: Issuance of loans secured by cryptocurrencies

In mid-August 2019, Silvergate Capital Corporation, which is a holding company for Silvergate Bank, announced the issuance of loans secured by cryptocurrencies.

Silvergate Bank filed a S1/A form with the US Securities and Exchange Commission, in which it noted that many customers would surely be attracted by the opportunity to obtain a loan secured by cryptocurrencies. The bank also stressed that over the past year it has revealed significant interest in obtaining such loans among its clients.

Silvergate bank begins issuing loans secured by cryptocurrencies

The bank said it would set the aggregate lending amount and develop a risk assessment framework to minimise losses and develop a new lending model over time. It is expected that institutional clients of the bank will be able to receive loans secured by cryptocurrencies as early as 2019, and the amount of the loan will significantly exceed the deposit in digital assets.

It is known that Silvergate Bank will act as a qualified custodian and will participate in the exchange of cryptocurrencies between the bank's clients. To implement the new system, the bank also uses the Silvergate Exchange Network (SEN), which allows corporate clients to transact among themselves at any time.

The annual income of Silvergate Bank is estimated at $30 million. In 2018, Silvergate deposits received from cryptocurrency customers increased by $150.4 million (approximately 11.4%). According to Cointelegraph, in the fourth quarter of 2018, Silvergate Bank signed contracts with several new customers specializing in cryptocurrencies, including cryptocurrency exchanges, as well as miners and global investors. Thus, Silvergate's customers have already become more than 500 companies operating in the cryptocurrency industry.^[1]

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