Silvergate Bank: "Our Crypto Customer Base Grew To 1,500 People In The First Quarter Of 2022"

Silvergate Bank: “Our Crypto Customer Base Grew To 1,500 People In The First Quarter Of 2022”

Silvergate Bank’s cryptocurrency-focused customer base has grown to over 1,500, according to first-quarter results released Tuesday.

“The number of digital currency customers rose to 1,503 as of March 31, 2022, from 1,381 as of December 31, 2021 and 1,104 as of March 31, 2021,” the firm said in a Q1 report.

Silvergate also stated that it generated $8.9 million in fee income from the cryptocurrency customer base, down from $9.3 million in the fourth quarter of 2021. Overall, the firm reported first-quarter net income of $27.4 million.

In terms of deposits, the firm said “the average customer deposit in digital currency rose to $14.7 billion in the first quarter of 2022, compared to $13.3 billion in the fourth quarter of 2021.”

Silvergate also noted a decrease in activity on its payment network, known as the Silvergate Exchange Network:

“The Silvergate Exchange Network (“SEN”) processed $142.3 billion in USD transfers in Q1 2022, down 35% from $219.2 billion in Q4 2021 and down 15% from $166.5 billion in the first quarter of 2021; cumulative USD transfers on SEN exceeded $1 trillion.”

The first quarter was also notable for the banking firm, one of many in the US that caters to crypto clients, thanks to a deal with Diem, formerly known as Libra . In January, Silvergate completed a deal with Diem to purchase the intellectual property and other assets of the stablecoin project, which was originally created by Facebook (an organization recognized as extremist and banned in the Russian Federation).

“To advance our customer-centric approach, we have continued to invest in our strategic initiatives, including stablecoin infrastructure through the acquisition of select blockchain-based payment technology assets from Diem Group and the launch of Euro SEN,” said Alan Lane, President of Silvergate. I look forward to the end of 2022 and what’s in store for Silvergate.”