Silvergate had just launched its shares on the NYSE Yesterday. The company sold 3.33 million shares to the public, while old shareholders sold a total of 2.5 million shares.
Although Silvergate is more commonly known as a commercial bank, it has recently expanded into the digital currency market. Yesterday, it listed its e-currency on the NYSE at an initial offering of $12.75.
Celebrating IPO Day
To mark the opening of its digital currency, Silvergate is celebrating its IPO today. The share offering from the company will be on until November 12.
Currently, the big bank players in the mainstream are still avoiding cryptocurrency. They are still largely skeptical about the viability and transparency in the industry. But with more players like Silvergate into the sector, it will not take long to draw the interest of the larger banks into the Cryptocurrency business.
Crypto customers rising for Silvergate
Silvergate is still a new baby when it comes to the crypto-market. But the company is gaining customers at an exponential rate. As of September, Silvergate has already gained more than 750 customers. The company also announced that on November 6, SEC declared its securities registration statement effective. With this news, the company has a license and permission to offer shares to the public through the NYSE.
In June, Silvergate had a total of 655 customers. But as of September 30, the customers had increased to 756. In a report, most of the customers were clients who deal with crypto-related funds such as custodians, miners, and exchanges.
Collaboration to facilitate Fiat transfers
In August this year, Silvergate Exchange Network (SEN) collaborated with Gemini Crypto Exchange to provide fiat transfers. SEC revealed that SEN has already made about $23.1 billion in total fiat transfers for the past nine months. It is an increase of the previous year’s transfer, which was $4.4 billion.
Silvergate Bank has a market value of $208 million. It is strong evidence that crypto-centered banking is growing. The bank has previously focused on blockchain firms. But when it extended its services to other stakeholders in the crypto industry, its share price doubled.
Just a day after the firm launched on NYSE, the share has already appreciated by 5%. As shareholders are releasing their shares, there is no shortage of buyers and investors.
If this share offering by Silvergate ends successfully, it will be another indication that the mainstream and the crypto industry can collaborate. It will also show that small lenders can take advantage of the situation to provide crypto-related services.
Major financial institutions can keep avoiding crypto-business, while banks like Silvergate keep soaring in it. And with SEC’s filling, customers and other crypto stakeholders have the confidence that Silvergate is on the right track.
Besides, other banks are taking advantage of the emerging market in the crypto-currency business. With Silvergate’s successful share sale, the bank will open more ways for small exchanges and crypto traders to grow the market beyond the current level.