Silvergate Bank, which bills itself as the “leading provider of innovative financial infrastructure solutions and services to participants in the digital currency industry,” has disclosed in a preliminary prospectus filed with the U.S. Securities and Exchange Commission that despite the bearish conditions in the bitcoin market, its number of crypto industry clients surged in 2018.
Silvergate Crypto Client Deposits Rise to $1.58 Billion
By the end of last year, Silvergate revealed that it had 542 cryptocurrency-related customers. This was an increase of 122.1 percent from 2017 when the total number of customers was 244, per the prospectus. Total deposits also increased approximately by 8 percent from $1.46 billion to $1.58 billion.
Silvergate Bank’s deposits and customer growth over time | Source: Silvergate Capital
Additionally, Silvergate disclosed that it was also in the process of onboarding some 232 customers.
Key Clients? Bitcoin Exchanges and Institutional Investors
Among its most notable customers, digital currency exchanges had deposited $618.5 million by the close of 2018. Institutional investors deposited $577.5 million. Some of the cryptocurrency firms that Silvergate counts as clients include Genesis, Circle, and Bitstamp.
Other clients include digital asset proprietary trading and investment firm Kenetic Capital and crypto-investment fund Polychain Capital. Hong Kong-based bitcoin storage firm Xapo and the firm behind the PAX stablecoin, Paxos, are also Silvergate’s clients.
The San Diego, California-based financial institution stands out alongside Europe’s Bank Frick and United States’ Signature Bank as some of the few banks in the world that have embraced crypto businesses according to Bloomberg.