Two banks situated in the US that provides services within the crypto industry has recently released financial results. These results show a decline in deposits done by customers within the crypto industry, but a positive trend has been observed in spite of that. One of these banks, Silvergate Bank, reported an increase in crypto-focused clientele throughout the year of 2019.
Overall Improvement, Individual Downfall
While last year saw an overall improvement of the downturn the crypto industry had suffered prior, it’s still not close to recovery yet. The world has started to increase its regulatory clarity, at least the developed world has, and interest within cryptocurrencies have steadily gone on the rise. With any luck, turnovers will grow alongside it, though recovery might not be as stable as one would think.
As luck would have it, cryptocurrencies have steadily started to begin acceptance within the world as a whole. With this small respite, larger financial institutions have begun to see Crypto as a potential profit rather than a threat and started to dabble with their veteran investments into the fledgling industry.
Of these banks, one called Silvergate Bank operates within the US. The bank has recently published its report for Q4 2019, with a yearly report for that same year as well. Silvergate Capital Corporation’s California-based subsidiary has revealed some exciting results within its “digital currency customers” segment of the Q4 2019 report. According to the report, the customer numbers shot up from 758, growing into 804 in total. Back in Q2’s report, the name was clocked in at 542.
More Clients; Less Deposits
Even with the addition of 48 new clients into its crypto services, the bank has registered a notable decrease in crypto-related fee income. While initially $1.6 million by the end of Q3, Q4’s numbers clock in at $1.4 million. Those numbers are subject to significant shifts, however, so one shouldn’t take it as a prophecy that Crypto is going down in the US.
Silvergate had officially acknowledged the decrease in deposits since the third quarter, having totaled $1.8 billion at the end of Q4. September 2019’s number recorded $33.4 million more than that, however, but year-over-year saw an increase. Q4 2019’s numbers are a measly 1.8% higher than Q4 2018, so at least there’s some marginal growth.
Non-Interest On The Downfall
The same numbers account for the non-interest bearing deposits. Those clocked in at around $1.3 billion, or about 26% less than the year before, and $50 million less than last quarter when compared to 2018, it’s a loss of $238 million.