Wall Street banks are still waters or watching the crypto currency business occasion, this business is becoming the western small and medium-sized banks “HKNPL machine”.
As one of the few actively provided services for encryption currency business U.S. financial institutions, bank Silvergate increased 59 encryption clients in 2018 in the last quarter of year 2018 from digital currency customer deposits increased 1.504 billion dollars, an increase of about 11.4%.
According to Silvergate bank submitted to the U.S. Securities and Exchange Commission (SEC) the latest IPO prospectus, as of December 31st, the Santiago based bank has 542 customers in the industry, including encryption, digital asset exchange and institutional investors etc.. In its September report to the listing submitted by SEC, the number is 483, which means that the fourth quarter of 2018 increased by 59 encryption customers.
Prospectus shows that fourth quarters of new signing customers including 2 encryption exchange, 24 investors and 33 companies, including the blockchain protocol developers, mine operators and service providers. In addition, Silvergate bank encrypts customers into three categories, including digital currency exchange, institutional investors and other customers.
Among them, digital currency transactions in all 37, total deposits of $618 million 500 thousand, partners including Gemini, bitFlyer, Kraken, exchange, Coinbase, Bitstamp, Bittrex and Genesis Trading maker; institutional investors accounted for 363, total deposits of $577 million 500 thousand, including investment fund partner Kenetic and Polychain Capital; other customers, 142 of the total deposits of $273 million 900 thousand, including bitcoin wallet provider Xapo encryption startup Paxos.
In March 18th, OKCoin released in the United States cooperative bank prospectus, cooperative bank is Silvergate.
The fourth quarter deposits, total deposits increased throughout the year
Although encryption number of customers increased, but these customers are held in the Silvergate bank account in the amount of dollars in the four quarter fell 123 million to $9, down from 30 March 1 billion 593 million to $12 30 $1 billion 470 million.
This contraction mainly comes from the exchange category, account balance of $174 million 400 thousand decrease. While the other two types of encryption of customer deposits increased by institutional investors, the deposits increased by $4 million 800 thousand, deposits of other start-up companies increased to $46 million 400 thousand.
Encryption related business not only constitute the main customers of Silvergate group, and 13.1% of the shares held by banks. The latest documents show that 10 client Silvergate has $843 million 600 thousand in the bank, about 47.3% of the total, of which 9 is the encryption service. In addition, 37 uses the Silvergate encryption currency exchange of its total deposits 34.7%.
Although 2018 bitcoin prices from more than 13 thousand U.S. dollars fell to less than $4000, but Silvergate pointed out that throughout the year from digital currency customer deposits increased by $150 million 400 thousand, about 11.4%, which indicates that the market did not hinder the overall growth of banks in 2018.
Silvergate is undoubtedly a crypto currency business growth of the beneficiaries, according to the Wall Street Journal reported last year 5 month, Silvergate’s asset base from 9.78 billion dollars increased to more than 19 billion dollars at present, a large part from bank support more than 250 encryption currency company.
The three exchanges of OKCoin announced last year to enter the domestic market of the United States digital assets, also as a cooperative bank. The OKCoin announcement shows that OKCoin has access to Silvergate through the U.S. dollar deal, Silvergate users recharge withdrawals, enjoy a lower fee rate, faster recharge withdrawals speed.
Small and medium sized banks encryption service “carnival”
In fact, in the Wall Street bank giants for encryption currency risk avoid encryption currency market on the occasion, encryption services arena leaving a lot of blank to small and medium sized banks. In addition to Silvergate, River Bank and Metropolitan Bank Cross and other banks are also to provide their customers with encryption operations focused on banking solutions.
Bank Metropolitan chief executive officer Mark DeFazio said the bank’s 2017 revenue increased two times more than the income in 2016, DeFazio believes that there is a paradigm shift major payment industry.
Support digital currency company’s small banks trend is not limited to the United states. According to bitcoinist reports, the Swiss Falcon and Vontobel and Fidor in Germany and Bank Frick of Liechtenstein small banks have accepted the encryption market provides encryption services related products and earn a huge income.