California-based Silvergate Capital Corporation has published details of a bitcoin-friendly start-up subsidiary of Silvergate Bank, which is currently preparing for an initial public offering (IPO).
A prospectus (Form S-1) filed with the US Securities and Exchange Commission (SEC) states that the company is positioning itself as a “banking platform for innovators”.
Currently, Silvergate Bank serves 483 “cryptocurrency clients”, which, according to the results of the third quarter of the current year, store funds in the financial institution in the amount of $ 1.7 billion. As of September 30, 2017, 114 market participants used the bank’s services. Thus, the growth in the number of Silvergate Bank customers since that time amounted to 323%.
The main customers of Silvergate Bank are cryptocurrency exchanges that hold funds for $ 793 million in this financial institution. Institutional investors, such as hedge funds and venture capital firms, make up $ 573 million deposits. Cryptostates and miners keep $ 227 million in this bank.
Silvergate Bank's customer deposits are deposited in deposit accounts with other banks, and also invested in securities. In addition, the financial institute receives a part of the profit thanks to the lending programs “with attractive risk-adjusted profit indicators”.
The bank has developed its own infrastructure solution called Silvergate Exchange Network (SEN), which connects cryptocurrency exchanges with investors and “ensures the effective movement of the US dollar” 24/7.
The companies are convinced that the market of cryptocurrency-oriented financial services, infrastructure solutions and other services plays a large role for the growing industry.
The company plans to raise $ 50 million in an IPO and be listed on the New York Stock Exchange under the ticker SI.
"We intend to continue to focus on digital currency-related initiatives, which are a key element of our strategy ," said Silvergate representatives.
Recall that at the beginning of this year, the Digital Currency Group, headed by Birri Silbert, invested in Silvergate Bank.
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