As the bank approaches the brink of collapse, crypto-friendly Silvergate is seeing a mass flight of its client base in addition to a precipitous drop in the value of its share price. Silvergate has acquired a reputation for attracting clients who own digital assets, which helped it become one of the most famous banks in the cryptocurrency business. The financial institution, which is situated in California, provides a variety of services that have been adapted to meet the requirements of crypto firms. These services include financing, wire transfers, and custody solutions.
The bank was one of the first institutions to identify the potential of cryptocurrencies and to provide specialist financial services to the sector. As a result, the bank is considered a pioneer in the cryptocurrency business.
While Silvergate is now recognized as an expert in digital assets, the bulk of its deposits were first provided by clients of conventional banking institutions. In the previous decade, the bank transformed itself from a minor regional presence into a central bank that will have $12 billion in deposits by the third quarter of 2022. Silvergate’s customer roster includes prominent cryptocurrency firms like as Coinbase, Gemini, FTX, and BlockFi, amongst others.
Despite this, the organization was dealt a significant setback as a consequence of its association with the defunct FTX exchange. Even if authorities weren’t paying attention, the bank was hit with consequences as the crypto epidemic spread.
The value of Silvergate’s shares has dropped by one-half since the news surfaced that the company had failed to file its SEC report on time. Declaring that it would be postponing the date on which it would file its annual report.