Crypto-company deposits at Silvergate Bank surpass $2 billion

In the third quarter, the Bitcoin-friendly Silvergate Bank accepted deposits from cryptocurrency companies totaling $586 million, bringing its total to $2.1 billion, according to Forbes.

At the end of the second quarter, the figure stood at $1.5 billion.

Over the three months, 928 clients from the cryptocurrency industry generated $3.3 million in revenue for Silvergate.

One factor behind the bank’s financial success is the Silvergate Exchange Network (SEN), which enables instant payments needed for arbitrage in crypto markets.

In the third quarter, SEN transfer volume amounted to $35.5 million, up from $22.5 million in the second quarter of the year.

The solution is currently available only to Silvergate clients, but the bank plans to create an open, blockchain-based version of the platform.

In the first quarter of 2020, volumes of payments in SEN rose by 75%.

Earlier, clients from the crypto industry at New York’s Signature Bank helped in the third quarter to boost deposits by $1 billion.

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