The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Silvergate touts liquidity position amid FTX concerns

Silvergate Capital in La Jolla, Calif., highlighted its access to liquidity in light of volatility tied to digital assets.

Binance earlier signed a letter of intent to buy crypto exchange FTX, with Binance CEO Changpeng Zhao tweeting about a “significant liquidity crunch” at FTX. Binance quickly backed away, with Zhao citing issues “beyond our control or ability to help.”

The $15.5 billion-asset Silvergate noted in a press release Wednesday that it has $8.3 billion in its securities held-for-sale portfolio, along with the ability to borrow from the Federal Home Loan Bank and the Fed.

“As a prudentially regulated bank, we manage our balance sheet to provide liquidity for our clients while maintaining a strong capital position in excess of the well-capitalized status required by federal banking regulations,” Alan Lane, Silvergate’s CEO, said in the release.

“We are a key infrastructure provider with an established track record, which gives our customers the confidence they need during times like these,” Lane added.

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