San Diego-based Silvergate Bank has onboarded 59 new crypto-related clients in the fourth quarter of 2018, as indicated in the state-chartered bank’s latest filing with the U.S. Securities and Exchange Commission.
According to the bank’s preliminary prospectus published March 18, as of December 31, 2018, Silvergate Bank had signed on 542 customers from the crypto industry, including crypto miners, exchanges, custodians, as well as international investors.
As detailed in the filing, by the end of 2018, 232 new crypto customers have reportedly undergone the bank’s onboarding process.
As the bank surmised, the number of traditional financial institutions accepting the crypto industry will only continue to grow over time, noting that:
“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 initial coin offering 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.”
So far, the bank had already signed on two crypto trading platforms, 33 crypto startups, and 24 crypto investors in the last quarter of 2018. As it stands, Silvergate Bank accepts a broad range of clients working in the crypto industry, including software developers, service providers, as well as crypto miners.
As Silvergate further highlighted in the filing, bank deposits coming from crypto-related customers have seen an 11.4 percent surge, increasing by approximately $150.4 million throughout 2018, while deposits derived from crypto investors have spiked from $4.8 million to over $577.5 million. As for all other crypto startups, client deposits have escalated from $46.4 million to nearly $274 million.
In February, crypto venture capital firm the Digital Currency Group had also invested in Silvergate Capital Corporation, the holding company for Silvergate Bank.
As the bank’s parent company announced in its previous press release:
“Proceeds from this placement will support further growth in the Bank’s nationwide fintechdeposit initiative and its business banking and residential lending activities.”