Silvergate Bank has started reaping benefits after letting bitcoin companies open bank accounts.
The California based bank has revealed it has accepted $586 million. This brings its total cryptocurrency assets to $2.1 billion as of September 30, 2020.
The bank has interestingly carved out a way to generate revenue with the same methods that have been in the domain of off-beat startups. They generate real income by working with blockchain assets.
Even though the banks do not hold their assets physically, 928 customers denominated in digital currency generated $3.3 million in revenue for the bank this quarter.
Regulatory changes have allowed banks to hold what are known as stable coins and other crypto assets. This has incubated the budding interests in blockchain-based assets.
CEO of Silvergate has also claimed that the bank infrastructure lays the foundation for Silvergate’s success in a highly digital world.
Alan lane said in a statement “we see an ample runway for further growth given the numerous opportunities to expand.”
Other Services Of Silvergate
The first bank to let cryptocurrency companies open an account, it also has other services to offer. They have created the Silvergate Exchange Network(SEN) that lets customers purchase rapidly to arbitrage cryptocurrency markets.
It is a centralized service and the only option available to Silvergate customers. However, the bank plans to build an open-source blockchain version of the platform that anyone could use.
The past several months have been great for crypto assets. Stone Ridge Asset Management Company revealed a position of $115 million worth of bitcoin. Also, Square invested $50million in bitcoin, and business intelligence firm MicroStrategy converted $425 million of its assets in bitcoin.