BTC PULSE
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise
No Result
View All Result
Sponsored
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise
No Result
View All Result
BTC PULSE
No Result
View All Result
Sponsored
Home Blockchain

Silvergate Took A 4.3 Billion Loan To Survive A Bank Run

by Abimbola Adu
Jan 11, 2023 - 12:00 am
in Blockchain
Silvergate Took A 4.3 Billion Loan To Survive A Bank Run

Silvergate Took A 4.3 Billion Loan To Survive A Bank Run

Silvergate Capital Corp, a bank affiliated with the now-defunct FTX, is under significant pressure as investors are rapidly pulling out their deposits. The bank has been hit so hard that it has had to take a $4.3 billion loan from the Federal Home Loan Bank of San Francisco to stave off bankruptcy. Silvergate is one of the many organizations suffering from the recent crypto exchange market crash and is likely not the last.

Do you want to know more about $GALA's pivot to include mobile gamers from across the industry? Here is a writeup from our CEO on exactly that!

More news incoming soon! Join our Discord at https://t.co/qSszqarMri! pic.twitter.com/0Qa8sMnXz1

— Gala Games (@GoGalaGames) January 8, 2023

Trouble for the financial institution began late last year shortly after FTX’s collapse. In a matter of weeks, investors had withdrawn investments amounting to nearly 70% of total deposits in the bank. This, in turn, led to an about 50% drop in the bank’s stock price, almost crippling the bank.

The bank has resorted to borrowing billions from the Federal Home Loan Bank of San Francisco, which is typically a last resort for firms facing bankruptcy. Reports indicate that prior to this borrowing, the California-based bank had recently sold $5.2 billion worth of debt securities despite incurring a loss of $300 million.

Despite the current troubles, Silvergate has had a successful history. The bank got its first big break in the decentralized finance (Defi) space when it launched the Silvergate Exchange Network (SEN), allowing exchanges like FTX and Uniswap to transfer US dollars.

When Bitcoin and other cryptocurrencies peaked last year, Silvergate also saw significant gains. From 2019 to 2021, the bank recorded an 800% increase in deposits, growing from just over a billion dollars to over $14.3 billion.

It’s uncertain what the future holds for Silvergate in the wake of the recent market crash. However, the bank has proven to be a solid institution. Weathering such significant losses in such a short period without declaring bankruptcy is a remarkable achievement as shown in recent tweets.

While the market downturn is challenging for Silvergate, it’s also worth noting that the bank has been relatively successful in comparison to some of its peers. It is still in operation, and recent news about the bank shows it is taking steps to address the issues that resulted from the recent market downturn. 

It is important to note that the information provided in this article is not intended as financial advice. If you have any business with Silvergate Capital Corp, it is strongly recommended that you consult a qualified financial advisor for personalized and professional guidance. 

Tags: FTXSilvergateUniswap
Abimbola Adu

Abimbola Adu

Abimbola Adu is a crypto content writer with a background in English studies. She is keen on enlightening others about cryptocurrency and blockchains. She enjoys writing poems and spending time with family.

Related Posts

Logo of Deutsche Telekom, now a Polygon validator, signaling its strong presence in the blockchain space.

Deutsche Telekom Breaks New Ground, Becomes Polygon Validator

June 1, 2023

In a bold step towards Web3, Deutsche Telekom leverages its infrastructure, operating as a validator for Ethereum's layer-2...

RBI Deputy Governor Mahesh Kumar Jain addresses Indian banking directors, urging the adoption of AI and blockchain technologies.

RBI’s Call to Arms: Indian Banks Urged to Embrace AI and Blockchain for Future Growth

May 31, 2023

The Reserve Bank of India advocates for the integration of AI and blockchain into Indian banking systems to...

Security researchers at dWallet Labs uncover a significant flaw in Tron multisig accounts.

Tron Fixes $500M Multisig Vulnerability Uncovered by dWallet Labs Security Team

May 30, 2023

Security experts at dWallet Labs uncover a critical $500M flaw in Tron's multisig accounts, which was promptly resolved,...

Graph depicting the growth of the North American digital gaming market driven by metaverse and blockchain technology

Metaverse and Blockchain Catalyze Growth in North American Digital Gaming Market

May 30, 2023

Rapid growth in North America's digital gaming market is driven by metaverse and blockchain integration, reshaping the future...

Press Releases

pulse x

Amsterdam Gets with the Dutch Blockchain Days the Biggest Event of the Benelux in the Field of Blockchain, Crypto Currencies, NFTs and Other Web3 Developments

May 8, 2023

Discover the future of blockchain, crypto, NFTs, and Web3 at Dutch Blockchain Days, the largest event in Benelux.

pulse x

Korea Blockchain Week 2023 Set to Push the Boundaries after Record-Breaking 2022 Event

May 8, 2023

Korea Blockchain Week 2023 returns after a highly successful 2022 event, featuring leading experts and the latest trends in blockchain...

pulse x

Istanbul Will Be Hosting Eurasia’s Largest Blockchain Event Once again on May 8–11, 2023

May 8, 2023

Join Eurasia's largest blockchain event, the Blockchain Economy Istanbul Summit, May 8-11, 2023, and discover the future of financial technology.

pulse x

Hong Kong Web3 Festival 2023, Hong Kong’s Largest-Ever Premier Digital Asset Event, is here. A Platform for Worldwide Leaders to Discuss the Latest Web3 and Blockchain Trends

May 8, 2023

Join Hong Kong Web3 Festival 2023, the largest-ever digital asset event, co-hosted by Wanxiang Blockchain Labs and HashKey Group.

View All
BTC-Pulse LogoTransparent

© 2023 BTC-PULSE. Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

News

  • Altcoins
  • Bitcoin
  • Ethereum
  • NFT
  • Regulation
  • WEB 3.0

Info

  • Learn
  • Price Prediction
  • Events
  • Press Releases
  • Sitemap

Company

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • Advertise

©2023 BTC-PULSE – All right Reserved.

No Result
View All Result
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise