The US-based crypto-friendly lender is considering jumping into the digital assets business. The bank’s pipeline is planning to offer fiat loans to clients with crypto assets as their main collateral.
Silvergate is one of the industry’s top go to places, serving renown clients such as Bitstamp, Genesis Trading, Coinbase, Blocktower Capital and Xapo. The bank has seen a sudden increase in industry demands.
With its portfolio update, Silvergate Bank will allow institutional clients of crypto exchange platform to use their fiat assets without interfering their crypto balances on the trading venues.
“This solution provides greater capital efficiency for institutional investor clients that wish to transact without needing to move liquidity on and off different exchanges.… Offering lines of credit would also improve liquidity within the order book of our exchange clients, enabling additional trading on their platforms, potentially reducing pricing arbitrage across exchanges and improving the stability of digital currencies.”, quotes the IPO filing.
Crypto-backed loans will be funded from Silvergate’s own balance. The bank expressed beliefs that any risk will be “appropriately compensated,… earning attractive risk-adjusted returns.”
“Capitalize on our Unique Market Insights—Because of our management team’s vision and our status as a sought-after partner within the digital currency industry, we see potential opportunities that many legacy financial services providers as well as digital currency market participants may not be able to see in the near-term. We believe that this unique position within the market will enable us to continue developing next generation financial infrastructure solutions and services and extend our first-mover advantage. Capitalizing on these opportunities has the potential to significantly accelerate our growth beyond the drivers visible to most market participants today and help us grow our position as a leading provider of innovative financial services infrastructure solutions and services to the digital currency industry.”
Mar 27, 2020 At the beginning of this week, a news broke out that a bill is going to be proposed in the US Congress called “Take Responsibility for Workers and Families Act”. As part of the measures targeted at handling the inevitable economic crisis following the COVID-19 pandemic, the Democrats were going to propose […]READ MORE
Mar 19, 2020 We at VIPCoin Casino love playing good old poker and that’s why we’re especially happy to announce that we can now offer our registered players a poker software! It can be used directly from your browser on any device. You can find the poker lobby on our homepage under the POKER section […]READ MORE
Mar 11, 2020 A week ago we were happy to see that India’s Supreme Court lifted the ban on banks servicing crypto firms. Great news from #India! The ban on banks servicing crypto-companies was struck down by their Supreme Court. Indian players are more than welcome to try our amazing #slots! – https://t.co/xq2m9Za1wR #BTC #bitcoin […]READ MORE