Silvergate Bank reports a 75% rise in Bitcoin Trading volume

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on  May 7, 2020
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  • Despite the level of uncertainty and volatility in the market, Silvergate still recorded some gains.
  • Market volatility was a huge test, and it was necessary to monitor the spikes and sharp changes in Bitcoin.
  • Silvergate is still running a pilot test of its partnership with Germini and Kraken exchange.

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Silvergate Bank has released its first-quarter results, with the bank’s BTC trading volume rising by 75%, according to the report released today.

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The firm filed a transcript to the Securities and Exchange Commission (SEC), where the bank gave details of the first-quarter report.

According to the report, Bitcoin trading volume grew by 75% on the Silvergate Exchange Network, which was a massive improvement over results from the previous quarter. The exchange company recorded more than 31,000 transactions, which represent a 118% increase from the previous quarter.

Currently, the bank is offering services to more than 850 digital currency-related clients, including global investors, custodians, miners, as well as crypto exchanges.

Silvergate reported gains amidst volatility

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The March 12 downturn has affected several crypto holders, as many of them saw negative returns. On the contrary, Silvergate reported a slight increase of deposits to about $447 million Bitcoins.

From the performance of the firm this first quarter, the firm believes it’s properly placed to consolidate on this improvement and even performs better in the future. Silvergate reiterated that the goal of the company is to use this momentum to build and prepare for potential volatility in the future.

Market volatility was a big test

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Silvergate stated that the period of market volatility was a very big test for the firm, after Gemini and Kraken Exchange joined last year. The partnership was still in its testing stage, as it provides leveraged trading to selected institutional customers via BTC.

Silvergate said one of the main goals of testing during the pilot stage was the system of monitoring the price of Bitcoin collateral.

The testing was also intended to prove whether the company has to liquidate Bitcoin collateral or whether the customers are covering the collateral shortfall. And to do the proper testing, the firm needed to see volatility in action.

“In order to really test that, you need to see some volatility in the asset class,” the firm said.

Silvergate further went ahead to say there were lots of volatility during the first quarter, and it’s good to know that the firm was able to monitor the volatility effectively.

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