The Bank Slate


Silvergate says FTX exposure limited to deposits

Silvergate Capital in La Jolla, Calif., said it has no outstanding loans to FTX.

The $15.5 billion-asset company also said in a press release Monday that it had no investments in the cryptocurrency exchange, which filed for bankruptcy protection last week.

FTX deposits represent less than 10% of the $11.9 billion of deposits belonging to digital asset customers, Alan Lane, Silvergate’s CEO, said in the release. FTX “is not a custodian for Silvergate’s bitcoin-collateralized SEN leverage loans,” he added.

“To date, all SEN leverage loans have continued to perform as expected with zero losses and no forced liquidations,” Lane said. “As a reminder, all SEN leverage loans are collateralized by bitcoin, and we do not make unsecured loans or collateralize SEN leverage loans with other digital assets.”

Silvergate last week issued a release touting its access to sources of liquidity, citing recent turmoil with digital assets.

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