SilverGate CEO says “This type of volatility is not new to us,” as crypto market continues to struggle
The current financial conditions are challenging for all financial markets, including Bitcoin, according to SilverGate CEO Alan Lane
In a recent interview with CNBC, SilverGate CEO Alan Lane gave his take on the battered crypto market, saying this is a deep crypto bear market, but it’s not going to zero.
The CEO said:
“SilverGate has been banking this ecosystem for 9 years. So this type of volatility is not new to us. In fact, we built our platform to help our customers in both good times and bad times.”
The current financial conditions are challenging for all financial markets, including Bitcoin, according to Lane. Despite this, Lane maintained that Silvergate would continue to provide 24×7 crypto service as they had in the past.
Lane mentioned that, as of September 30th, the firm had $13 billion in cash and investment securities that could support cash outflows.
SilverGate’s exposure to fallen crypto firms
In light of SilverGate’s exposure to some of the fallen crypto firms recently, it attracted a lot of attention since it is viewed as a bridge between crypto and traditional finance.
In regards to the FTX fallout, the firm made it clear that FTX represents less than 10% of its total deposits from digital asset customers. Additionally, Silvergate does not have any outstanding loans or investments in FTX.
Further, in the midst of the BlockFi bankruptcy, the prominent bank clarified that it has minimal exposure to BlockFi and that its total deposits from all digital asset clients are no more than $20 million.
However, it was recently discovered that the financial institution had transferred $425 million between crypto bank accounts to South American money launderers.