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.