Cryptocurrency-friendly bank Silvergate reports Q1 earnings for 2020: cryptographic customers, deposits and net profits all increased

BlockBeats news, Coindesk reports that Silvergate, an encryption-friendly bank, recently released its earnings report on April 29th. In the first quarter of this year, the bank as a whole added 46 customers in the encryption sector, with both deposits from the sector and net profit rising, according to the report.

In the first quarter of this year, Silvergate had 850 cryptocurrency clients, including 61 trading platforms, 541 institutional investors and 248 other clients. The largest group of clients is institutional investors, up 52 in the quarter, according to the chart above. Moreover, the growth is continuing, with more than 200 potential customers, according to Silvergate.

Net profit was $4.4m, up 22 per cent from the previous quarter but down 53 per cent from the same period last year, according to the disclosure. In addition, other deposits fell about 45 per cent in the quarter, but deposits from digital currency customers rose 35 per cent to about $1.7bn, the bulk of the bank's $2bn in deposits.

The bank plans to add more products to SEN (Silvergate Exchange Network) in the future, including a bitcoin margin lending feature called SEN Leverage, which is currently in a pilot phase. So far, the bank has approved $12.5 million in bitcoin mortgages and plans to launch the product this year.

Moreover, in response to a question about how Silvergate would benefit from Libra's release, Ben Reynolds, Silvergate's executive vice-president of corporate development, said the bank planned to offer a cash-management product that would quickly move fiat to stable currency.

It is understood that Silvergate bank, a california-based commercial bank specialising in digital currencies, is one of the few cryptocurrency-friendly Banks that has served leading cryptocurrency start-ups such as Coinbase, Gemini, Kraken and bitFlyer. On November 7, 2019, Silvergate bank went public on the New York stock exchange under the symbol SI.

The original link: https://www.coindesk.com/silvergate-bank-q1-2020-earnings-crypto-customers-sen-transactions

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