The Bank Slate


Silvergate: Genesis relationship limited to deposits

Silvergate Capital in La Jolla, Calif., said its relationship with Genesis Global Holdco was limited to deposits.

The $11.4 billion-asset Silvergate said in a press release that it holds less than $2.5 million of deposits tied to Genesis, which recently filed for bankruptcy protection, or its subsidiaries.

Silvergate said that Genesis is not a custodian for its bitcoin-collateralized SEN leverage loans and the bank has no outstanding loans to nor investments in Genesis.

Silvergate has felt the need to make several similar statements in recent months as other crypto-focused clients, including FTX and BlockFi.

Still, Silvergate was forced to sell securities at a loss and borrow from the Federal Home Loan Bank system after losing more than half of its deposits during the fourth quarter.

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