California-based Silvergate Bank this week updated its filing with the U.S. Securities and Exchange Commission, revealing continued growth in its cryptocurrency-related services. According to the updated data, the bank now provides services to more than 500 crypto-related firms, even as major banks around the world continue to deny banking services to companies in the industry.
In its last report, Silvergate claimed 483 digital asset companies as clients. The new filing shows that the bank now provides services to 542 companies in the industry – an increase of more than 12 percent in just three months. The current total represents a 122% increase over 2017’s numbers. The bank attributed that growth to its “focus on the digital currency industry in recent years and the unique value-add solutions and services” it provides.
The bank filing describes the rapid growth of its cryptocurrency-related business, and notes that an additional 232 prospective customers were being vetted for onboarding at the end of last year:
We have developed a diverse set of 542 established and emerging digital currency industry customers as of December 31, 2018. Our customer base has grown rapidly, as many customers proactively approach us due to our reputation as the leading provider of innovative financial infrastructure solutions and services to participants in the digital currency industry, which includes our unique technology solutions.
As of December 31, 2018, we had 232 prospective digital currency customers in various stages of our customer onboarding process, which includes extensive regulatory compliance diligence and integrating of the customer’s technology stack for those digital currency customers interested in using our API.
The bank’s report reveals that those customers include 37 cryptocurrency exchanges with a combined total of more than $618 million in deposits; 363 hedge funds, venture capital, and other institutional investors with a total of $577 million in deposits; and 142 other crypto-related companies with deposits totaling roughly $274 million.