1 August 2026
Crypto Friendly Bank Reports 75 Percent Increase in BTC Trading
The Silvergate bank known for its friendly relation with cryptos saw an increase in the number of customers for digital currency and also for Bitcoin trading volume in the 2020 first quarter.
As per the 29th April report that was filed with the U.S. Securities and Exchange Commission (SEC) for the first quarter earning of Silvergate bank, there was an increase in Bitcoin trading volume by 75% as compared to the previous quarter. Silvergate Exchange Network (SEN) transaction volume for Bitcoin (BTC) also increased by 118%, with more than 31,000 transactions.
Currently, the Silvergate bank is serving 850 clients related to the digital currency which includes cryptocurrency exchanges and miners, custodians, and global investors.
Many holders received negative returns from crypto but Silvergate reported “a fairly significant increase” in deposits of $447 million BTC following the March 12 downturn. As per the performance of the firm based on Q1, the bank believes it is “well-positioned” to add more digital assets and potential volatility in the future.
The bank reports that volatility had been a good test for SEN that later was joined by Kraken and the Winklevoss’ Gemini exchange last year. However, in the pilot stage, the exchange offers leveraged trading to select institutional customers using BTC:
“One of the things that we were eager to test in the pilot was the mechanism by which we are—we monitor the price of the bitcoin collateral, and then also make the "margin calls" or our—whether our customers are covering collateral shortfalls and/or whether we have to liquidate bitcoin collateral. In order to really test that, you need to see some volatility in the asset class... we saw quite a bit of volatility during the first quarter, and I'm happy to say that our monitoring worked well”
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