Silvergate Capital says FTX reflects less than 10% of its total deposits from digital asset customers
Silvergate Capital issued a statement to inform the public of its exposure to FTX and its related entities.
The provider of financial infrastructure solutions to the digital asset industry adds to the mass of companies declaring their FTX exposure in a bid to reassure interested parties.
Silvergate Provides Statement on FTX Exposure — Silvergate Bank (@silvergatebank) November 11, 2022
Silvergate CEO Alan Lane stated:
In light of recent developments, I want to provide an update on Silvergate’s exposure to FTX. As of September 30, 2022, Silvergate’s total deposits from all digital asset customers totaled $11.9 billion, of which FTX represented less than 10%. Silvergate has no outstanding loans to nor investments in FTX, and FTX is not a custodian for Silvergate’s Bitcoin-collateralized SEN Leverage loans. to be clear, our relationship with FTX is limited to deposits.”
Lane goes on to explain that “all SEN Leverage loans have continued to perform as expected with zero losses and no forced liquidations” — further reinforcing the statement that their ongoing financial endeavors remain steady and unhindered by the recent events.
As a reminder, all SEN Leverage loans are collateralized by Bitcoin, and we do not make unsecured loans or collateralize SEN Leverage loans with other digital assets.”
Lane iterates that Silvergate Capital Corporation was built to support clients through “market volatility and transformation” and that the Silvergate Exchange Network (SEN) continues “without interruption.”
“As a federally regulated banking institution that is well capitalized, we maintain strong balance sheet with ample liquidity to support our customers’ needs.”
At the core of Silvergate’s customer-centric suite of payments, funding, and lending, the SEN enables the corporation to continue enabling rapid growth of digital asset markets alongside the reshaping of global commerce in preparation for a digital asset future.
Lane is scheduled to participate in a fireside chat at the Oppenheimer Blockchain & Digital Assets Summit on Nov. 17 at 2:55 pm ET.
Josh has been writing for a decade and is passionate about mainstream crypto adoption, bringing positive financial change to the masses through crypto and decentralized finance as a whole.Source