Silvergate Bank received $586 million of cryptocurrency deposits for the third quarter of 2020

Silvergate Bank, which works with cryptocurrency companies, received $586 million in crypto assets in the third quarter of 2020. Total deposits reached $2.1 billion.

Among Silvergate’s clients are 928 companies working in the field of cryptocurrencies and blockchain. For the third quarter of 2020, they brought the bank $3.3 million in revenue. In the previous quarter, this figure was $2.4 million, and in the third quarter of 2019, the profit was $1.6 million. At the same time, the bank does not provide custodial services.

“Silvergate Bank’s infrastructure has provided the foundation to succeed in a truly digital world. And we see a lot of opportunities for further growth and expansion, ” said Silvergate CEO Alan Lane.

One of the factors that increased profits was the popularity of the Silvergate Exchange Network (SEN) exchange service. It allows companies to quickly buy cryptocurrencies and use them for arbitrage trading. During the entire existence of the product, transactions worth more than $100 billion were processed, while for the third quarter of 2020, this figure was $36 billion.

The SEN Leverage product for lending to cryptocurrency companies continues to develop. Customers can receive loans in US dollars by providing bitcoins for collateral. In the third quarter of 2020, the bank issued loans in the amount of $35.5 million.

In May of this year, Silvergate Bank reported an
increase in the volume of transactions with bitcoin in the first quarter of 2020 by 75% compared to the previous quarter.