Silvergate Bank Seeks IPO to Grow Cryptocurrency Services

Plenty of Room to Grow

The company reassures potential investors that the market niche it has carved out for itself still has plenty of room to grow. It estimates that “the addressable market for fiat currency deposits related to digital currencies alone is approximately $30 to $40 billion.” Additionally, Silvergate Bank reports it already had another 145 prospective cryptocurrency customers waiting in various stages of its customer onboarding process by the end of the third quarter of the year.

Silvergate Bank’s most important group of customers, some of the largest U.S. exchanges and global investors in the digital currency industry, hold their investor funds and operating funds with the bank. Another group of cryptocurrency customers includes software developers, miners, custodians and general industry participants. These entities were said to account for 22.6 percent of the bank’s cryptocurrency customers as of Sept. 30, 2018. The bank adds "we believe this group presents future growth opportunities as the digital currency industry landscape continues to develop.”