Silvergate saw boom in crypto clients in Q4 - with startup deposits surging
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59 additional crypto businesses signed up to bank with Silvergate in the fourth quarter of 2018, taking its total number of crypto clients to 542, according to the bank’s December IPO prospectus.
Silvergate is one of the few US institutions that primarily serves crypto businesses and began its campaign to be listed publicly in September when it declared it had 483 crypto clients - including major exchanges Gemini and Coinbase. The new intake is an eclectic mix of protocol developers and mining companies.
Despite the growth in its crypto client base, their collective account balance dropped by 8 percent since September; concentrated in a drop in revenue among their exchange customers. Silvergate's crypto accounts now total $1.47 billion in deposits, down by $123 million but up overall from 2017 by 11.4 percent. They were buoyed by their startups more that quadrupling their deposits from $46.4m to $273.9m, its December prospectus showed - a promising sign for its listing and of the space's resilience amid the bear market.
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Isabel is The Block's London and European reporter. She previously reported for Reuters in Madrid and London, following on from her time as a freelance journalist for the Guardian and the New York Times. She has a Bachelors in War Studies from King’s College London and a Master of Philosophy from the University of Oxford. Conflict of Interest: Edward Woodford, the CEO of SeedCX, is Isabel's brother. She does not report on any issues related to Seed or advise other authors in any regard.
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