• Silvergate Bank reported a net loss of $1 billion attributable to common shareholders in the fourth quarter of 2022.
• The company highlighted that deposits in the fourth quarter were $7.3 billion, which was lower than the third quarter figure of $12 billion.
• Silvergate Bank noted that a crisis of confidence throughout the digital asset space led customers to take a “risk off” position on crypto trading platforms.
Silvergate Bank recently announced a $1 billion net loss attributable to common shareholders in the fourth quarter of 2022. The report published by the United States Securities and Exchange Commission (SEC) highlighted that deposits in the fourth quarter were $7.3 billion, which was lower than the third quarter figure of $12 billion.
The digital asset bank is currently at the center of a class-action lawsuit over its FTX and Alameda Research dealings. The company also highlighted a “transformational shift” in the digital asset space, noting that a crisis of confidence throughout the ecosystem led customers to take a “risk off” position on crypto trading platforms.
In order to maintain cash liquidity, Silvergate Bank took various actions, such as wholesale funding and selling debt securities. The company also emphasized its commitment to its customers, noting that they have access to the “most innovative digital asset solutions in the market” and that the bank will continue to “provide our customers with the highest level of service and support.”
The digital asset bank is currently facing stiff competition from other digital asset banks and platforms, such as Coinbase, Gemini, and Kraken. In order to remain competitive, Silvergate Bank is focusing on expanding its services and offering competitive fees. Additionally, the bank is also exploring new opportunities in the digital asset space, including the development of new products and services.
The digital asset space is rapidly evolving and Silvergate Bank is committed to staying ahead of the curve. The company is dedicated to providing its customers with the most innovative solutions in the market and will continue to remain a leader in the industry.