Whether you love, hate, or are completely indifferent to them, it’s impossible to deny that cryptocurrencies have entered the mainstream. And while Warren Buffet still might not be a fan, institutional interest has contributed to the current popularity of alternative currencies.
While adoption by companies like Visa, PayPal, Square, and Tesla in recent years has made it easier for consumers to make use of cryptocurrencies and gone some way to legitimizing the idea of them as actual currency, most traditional banks in the U.S. are yet to take the plunge.
One bank, however, has not only been crypto-friendly for almost a decade, but it has also been at the forefront of facilitating the integration of alternative currencies with mainstream financial institutions, as a major partner of cryptocurrency exchanges and advocates.
Silvergate Capital is a leading financial infrastructure provider of cryptocurrency solutions for institutional and commercial customers. The company’s Silvergate Exchange Network (SEN) has been critical in increasing institutional demand for digital currencies as it has provided a global payments platform that enables the real-time transfer of U.S. dollars between digital currency exchange customers and institutional investors. This virtually instantaneous payment network for participants in the digital currency industry serves as a platform for the development of additional products and services.
Silvergate wants to be the premier bank for crypto and is one of the only banks that has most of its deposit business devoted to the industry. Looking ahead the company is evaluating additional services specifically targeted at providing further financial infrastructure solutions to its customers and strengthening its SEN network effects. It aims to achieve this through further global expansion and with new products like margin lending that will provide secure, institutional-grade access to capital through USD loans collateralized by bitcoin.