Silvergate Capital is Set to go Public—IPO
Based on a recent document filed with the US Securities and Exchange Commission (SEC), a California-based financial institution Silvergate Capital, is set to go public. The company is set to have its initial public offering (IPO) and is looking to raise $50 million from investors.
The Silvergate Bank
The Silvergate Bank, a child company of the Silvergate Capital, is well known for its numerous blockchain focused clients. The bank had its first crypto-based client back in 2014 and since then it has managed to attract top ranking crypto exchanges like Gemini, and Kraken. So far, the bank has managed to bring onboard approximately 483 established and new digital currency customers.
According to the filing report also, the bank has about “145 prospective crypto customers currently being onboarded”. The filing report also made it known that the bank is currently conducting an “extensive regulatory compliance diligence and integrating of the said customer’s technology stack”
According to the filing report, the bank is planning to have its shares listed on the New York Stock Exchange (NYSE) under the ticker symbol “SI.”
The company also has plans to use the funds raised during the IPO,” to fund its organic growth and for “general corporate purposes, which could include repayment of long-term debt, future acquisitions, and other growth initiatives.”
The filing further stated that: “As of September 30, 2018, approximately $1.7 billion, or 88.2%, of our total deposits were noninterest-bearing demand accounts. Substantially all of these noninterest-bearing demand accounts are deposits from our customers in the digital currency industry.”
Focus Change
The bank also made it known that its focus is no longer in line with that of a traditional lender. The bank plans to start providing “non-interest bearing deposits for digital currency businesses.”
The Silvergate Bank has also estimated the market for cryptocurrency banking services to be between $30 billion and $40 billion.”
