Silvergate Capital (SI)–A cryptocurrency proxy or interest-rate leveraged bank?

Silvergate has an intriguing bank model. Silvergate pays almost nothing on its deposits (liabilities) so earns an unusually high spread on the securities it invests in (assets). The Silvergate Exchange Network (SEN) connects the different crypto platforms (FTX, Coinbase, Gemini) so the growth of crypto trading has enabled Silvergate’s deposits to grow rapidly. Because they […]