A U.S. Bank Offering (and Growing) Cryptocurrency Services? Yes, Silvergate

Silvergate


A very astute business decision, indeed. Several years ago San Diego-based Silvergate Bank decided being a “normal” business bank was just not where it wanted to try and grow. So, the management made the move to be a cryptocurrency-friendly bank as it “saw the future” and loved the growth possibilities. Taking the risk to go into the world of crypto (digital) technologies has proved to be very shrewd. Now Silvergate is planning an IPO (uh, why not a STO?) to grow their services and offerings. Could be very interesting when the IPO hits since their growth is impressive. Must be good because they now have a La Jolla address. Read a bit more.
(Bill Taylor/Fintek Capital)


“Silvergate Bank has transformed itself in recent years from a typical business bank to one of the financial institutions of choice for digital currency companies.
Now the cryptocurrency-friendly bank, which is headquartered in La Jolla, CA, is preparing to go public. On Tuesday it set a $50 million price target, according to documents filed with securities regulators.

The bank has applied for a New York Stock Exchange listing under the stock symbol “SI.” Silvergate didn’t provide much detail on how it planned to use the proceeds, saying simply that the money would go to fund “organic growth and for general corporate purposes.”

That could include paying off long-term debt and making acquisitions, the bank said, but also noted that it doesn’t have any current acquisition plans.
Curiosity about the new technologies on the part of Silvergate CEO Alan Lane, dating back to 2013, led to the bank’s eventual move into the risky world of cryptocurrency. (Digital currencies, such as bitcoin and ethereum, have experienced wild swings in value.)

Lane, anticipating the nascent industry’s need for financial services, spotted a business opportunity. Silvergate signed its first cryptocurrency client in 2014, New York-based holding company Digital Currency Group (DCG)…”

Full Story at Xconomy.com