Silvergate Bank and its new crypto customers

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Silvergate Bank, which supports cryptocurrency has signed up a new swathe of customers, according to its Q4 filing with the US Securities, and Exchange Commission, Cointelegraph has revealed.

The filing reveals that as of Dec. 31, 2018, Silvergate had 542 digital currency-related clients, including crypto exchanges and miners, custodians and investors. The figures indicate that Silvergate has 59 more customers than it had in September 2018.

The report also indicates that at the end of 2018, some 232 customers were at various stages of the bank’s customer on-boarding process, including regulatory compliance.

A statement from the bank said: “Currently, there are over 300 institutional investment funds with aggregate estimated assets under management of between approximately $7.5 billion to $10 billion. Over $8.3 billion has been invested in digital currency-related projects, excluding ICO funding, since December 31, 2013. Approximately $1.3 billion in venture funding was raised in the digital currency and blockchain market in the 12 months ended June 30, 2018, which is the most recent date such information is available.”

The bank believes that acceptance of digital currency by traditional financial institutions will continue to grow, and in the fourth quarter of 2018 the bank saw two exchanges, 33 companies, and 24 investors among its new clients, including software developers, cryptocurrency miners, and service providers.

During 2018, Silvergate’s deposits derived from cryptocurrency customers reportedly increased by $150.4 million, or around 11.4 percent. Furthermore, cryptocurrency investors’ deposits saw a growth by $4.8 million to $577.5 million, while other startups’ balances increased by $46.4 million to reach $273.9 million. Digital Currency Group (DCG), a cryptocurrency venture capital firm has been one of Silvergate’s investors since last November and said of the move, “Proceeds from this placement will support further growth in the bank’s nationwide fintech deposit initiative and its business banking and residential lending activities.”

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