Silvergate Bank, which serves fintech and cryptocurrency customers such as bankrupt crypto exchange FTX and its sibling hedge fund Alameda Research, released a statement from its CEO, Alan Lane, to reassure shareholders about its due diligence methods, risk management, and reserves.
Lane stated that upon accepting wires intended for Alameda, the lender followed all applicable regulatory processes.
According to Lane, any suspected illegal behavior was examined and, if necessary, disclosed as such, as required by both the bank’s internal processes and legislation.
“Silvergate conducted significant due diligence on FTX and its related entities, including Alameda Research, both during the onboarding process and through ongoing monitoring, in accordance with our risk management policies and procedures and the requirements outlined above.”
Customers continue to have access to their US dollar deposits when they need them, according to the bank’s CEO, and the Silvergate Exchange Network (SEN) has continued to operate uninterrupted throughout this period.
“I’m proud that all of our customers continue to have access to their U.S. dollar deposits when they need them and that the Silvergate Exchange Network (SEN) has continued to operate uninterrupted throughout this period,” said the CEO.
While Silvergate does not appear to be a creditor of FTX, it does have a substantial deposit relationship with the now-defunct exchange. One month earlier, the bank stated that FTX deposits accounted for approximately 10% of its $11.9 billion in digital asset deposits.
Lane also affirms that Silvergate’s assets have adequate liquidity for customer requirements:
“In addition to the cash we carry on our balance sheet, our entire investment securities portfolio can be pledged for borrowings at the Federal Home Loan Bank, other financial institutions, and the Federal Reserve Discount Window — and can ultimately be sold should we need to generate liquidity to satisfy customer withdrawal request.
We intentionally carry cash and securities in excess of our digital asset related deposit liabilities.”
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
Coincu News
