Silvergate Up 5% on NYSE Debut in Positive Signal for Crypto IPOs
- The bank offered 3.33 million shares at its public offering, with selling shareholders unloading 2.5 million of their holdings.
Silvergate, which is trading under the ticker (NYSE: $SI), saw its assets double after recently focusing mostly on Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term firms.
NYSE Opening Bell ?: Silvergate (NYSE: $SI) celebrates their IPO day https://t.co/FX3OQcP0dU
— NYSE ? We Are Living Tech (@NYSE) November 7, 2019
The San Diego-based bank filed with the market regulator, the US Securities and Exchange Commission (SEC), as it plans to raise $40 million. After it secured the SEC’s approval, it announced the initial pricing of its IPO at $12 per share.
Shares of Silvergate climbed five percent in its stock exchange debut, currently exchanging hands at $12.61. The bank offered 3.33 million shares at its public offering, with selling shareholders unloading 2.5 million of their holdings.
If successful, this IPO will be a major instance through which the relationship between mainstream capital markets and the newer cryptocurrency world will go ahead. It will also show how small lenders can capitalize on the mania to service cryptocurrency-related businesses as the big banks avoid the sector.
Crypto has become a real money maker
In the absence of major institutional attention, Silvergate Bank provided tailored financial services to businesses that are directly or indirectly dealing with cryptocurrency and blockchain-related services. Enabling a seamless transition between the crypto and fiat worlds helped the bank to double its assets under management from $978 million to $2.2 billion.
The filing with the SEC also highlights how the crypto sector has become a real moneymaker for Silvergate. While major banks continue to refrain from processing transactions in cryptocurrency, “the majority of our funding comes from noninterest bearing deposits associated with clients in the digital currency industry,” Silvergate states.
It further reads: “As of September 30, 2018, approximately $1.7 billion, or 88.2%, of our total deposits were noninterest-bearing demand accounts.”
By enabling crypto firms to use their banking services, the local three-branch lender has managed to onboard over 750 blockchain-related companies in the past year, including big US exchanges such as Paxos, Gemini, and Kraken.
Silvergate is not the only bank taking the opportunity to capture a share in the emerging market of cryptocurrency-related businesses. Over the last couple of months, a handful of small lenders in Europe were also following suit, even going as far as offering a dedicated banking service for this sector in an attempt to resolve its financial inefficiencies.
Silvergate, which is trading under the ticker (NYSE: $SI), saw its assets double after recently focusing mostly on Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term firms.
NYSE Opening Bell ?: Silvergate (NYSE: $SI) celebrates their IPO day https://t.co/FX3OQcP0dU
— NYSE ? We Are Living Tech (@NYSE) November 7, 2019
The San Diego-based bank filed with the market regulator, the US Securities and Exchange Commission (SEC), as it plans to raise $40 million. After it secured the SEC’s approval, it announced the initial pricing of its IPO at $12 per share.
Shares of Silvergate climbed five percent in its stock exchange debut, currently exchanging hands at $12.61. The bank offered 3.33 million shares at its public offering, with selling shareholders unloading 2.5 million of their holdings.
If successful, this IPO will be a major instance through which the relationship between mainstream capital markets and the newer cryptocurrency world will go ahead. It will also show how small lenders can capitalize on the mania to service cryptocurrency-related businesses as the big banks avoid the sector.
Crypto has become a real money maker
In the absence of major institutional attention, Silvergate Bank provided tailored financial services to businesses that are directly or indirectly dealing with cryptocurrency and blockchain-related services. Enabling a seamless transition between the crypto and fiat worlds helped the bank to double its assets under management from $978 million to $2.2 billion.
The filing with the SEC also highlights how the crypto sector has become a real moneymaker for Silvergate. While major banks continue to refrain from processing transactions in cryptocurrency, “the majority of our funding comes from noninterest bearing deposits associated with clients in the digital currency industry,” Silvergate states.
It further reads: “As of September 30, 2018, approximately $1.7 billion, or 88.2%, of our total deposits were noninterest-bearing demand accounts.”
By enabling crypto firms to use their banking services, the local three-branch lender has managed to onboard over 750 blockchain-related companies in the past year, including big US exchanges such as Paxos, Gemini, and Kraken.
Silvergate is not the only bank taking the opportunity to capture a share in the emerging market of cryptocurrency-related businesses. Over the last couple of months, a handful of small lenders in Europe were also following suit, even going as far as offering a dedicated banking service for this sector in an attempt to resolve its financial inefficiencies.