One of the most crypto-friendly banks in the US, Silvergate, added 48 clients that use cryptocurrencies, in Q4 of 2019.

In a published report, this week on Silvergate's earnings shows a 4% decrease in the deposits from their crypto customers, even though the La Jolla California-based bank managed to add almost fifty new crypto clients in the same period. Also, the bank’s deposits were down 1.8% in the same 4th quarter, they are currently trading on the New York Stock Exchange under the symbol (SI).

Silvergate Bank’s CEO, Alan Lane, has explained in a press release that progress has been made, and the Silvergate Exchange Network (SEN) has brought new clients on board. (SEN) commercial investors to move US dollars between crypto exchanges instantly. The number of transactions on the exchange in Q4 was 14,400, 17% more than in Q3.

The bank has $2.1 billion in assets. It increased the cost of deposits from 0.5% to 0.84% and earned $1.4 million in fees from its crypto clients, which is 12.5% less than the $1.6 million from Q3. Besides, it added 11 crypto exchanges with some over-the-counter desks included, 16 crypto businesses like crypto application firms and mining operations, and 21 institutional investors.

Silvergate had a decrease in the net income by about 45%, with $6.6 million in Q3 and only $3.6 million in Q4. Back in 2013, the bank decided to add to its traditional commercial banking services the cryptocurrency products, in an attempt to gain more clients that make non-interest bearing deposits.

What Silvergate does is convert deposits at other banks into interest-bearing ones, also in loans and investment securities. Just as this year started, They launched the SEN Leverage product for traders to use Bitcoin (BTC) as collateral against their fiat loans. The bank also hired Benjamin Richman, the former Blockstream exec, as the new director.

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