The crypto-focused customer base of Silvergate Bank grew to more than 1,500, according to the first-quarter results published Tuesday.
"Digital currency customers grew to 1,503 at March 31, 2022, compared to 1,381 at December 31, 2021, and 1,104 at March 31, 2021," the firm said in the release of its first-quarter results.
Silvergate also stated that fee income from its crypto customer base was $8.9 million, a decline from Q4 2021's $9.3 million. Overall, the firm posted a net Q1 income of $27.4 million.
Looking at deposits, the firm said that "[a]verage digital currency customer deposits grew to $14.7 billion during the first quarter of 2022, compared to $13.3 billion during the fourth quarter of 2021."
Silvergate also highlighted a decline in activity on its payment network, known as the Silvergate Exchange Network:
"The Silvergate Exchange Network (“SEN”) handled $142.3 billion of U.S. dollar transfers in the first quarter of 2022, a decrease of 35% compared to $219.2 billion in the fourth quarter of 2021, and a decrease of 15% compared to $166.5 billion in the first quarter of 2021; Cumulative U.S. dollar transfers on the SEN crossed $1 trillion dollars."
The first quarter was also a notable one for the banking firm, one of a number in the US that cater to crypto sector customers, for its deal with Diem, formerly known as Libra. In January, Silvergate finalized a deal with Diem to purchase the intellectual property and other assets of the stablecoin project, which was originally created at Facebook.
To advance our customer-first approach, we continued to invest in our strategic initiatives, including stablecoin infrastructure through the acquisition of select blockchain-based payment technology assets from the Diem Group, and the launch of the Euro SEN," Alan Lane, Silvergate's president and CEO, said in a statement. "I look forward to the rest of 2022 and I am excited for what lies ahead for Silvergate.”