On Tuesday, Silvergate Bank, cryptoThe results of the first quarter for 2022 by the -fiat gateway network for financial institutions was announced. DuringThis period, it revenueNet income grew by 93% & 94% respectively year-overyear to $59.9m and $24.7m, respectively. TheMost notable is its Silvergate Exchange NetworkSEN (or SEN) facilitates U.S. Dollar and Euro transfers between cryptocurrency exchanges institutional investors.
DespiteIts growth however, institutionalInterest in cryptoA significant hit in Q1Because of the ongoing bear market AsTold by SilvergateThe amount of SEN transfers it facilitated fell from $167 billion to $167 billion in Q12021 to $142 Billion in Q1 2022. Simultaneously, asPart of larger industry trends Bitcoin(BTC). Ethereum(ETH) Spot tradingThe value of $1.046 Trillion fell 33% year-overyear in Q1 2022.
NeverthelessThe company also saw an increase in revenue. inIts cryptocurrency storage segment. PartlyDue to an annualized deposit cost of 0.00% institutionalAn average of $14.7 trillion was invested by investors in digital assets in Silvergate’sHands, compared with $6.4 billion in Q1 2021.
CointelegraphPreviously reported that SilvergatePurchase Mark Zuckerberg’sStablecoin project DiemIt was sold for $182million after it was declared insolvent. SilvergateCurrently, stablecoin infrastructure is being expanded asThis is a key area for growth. AtThe company, just like traditional banks, derives the vast majority its income at the moment. revenueFrom interest income, that is, borrowings’ deposits asCollateral to issue loans, deposit them, or purchase interest-bearing security inOther banks offer interest bearing accounts.