Silvergate Bank revenues increased in Q1 due to declining cryptocurrency activity.

On Tuesday, SilverGate Bank announced its results for the first quarter of 2022, a crypto-fiat gateway network designed for financial institutions. , About $ 59.9 million and $ 24.7 million. The company is well-known for its ability to transfer US dollars and Euros between cryptocurrency exchanges and institutional investors through the Silver Exchange Network or SEN.

Despite its growth, institutional interest in crypto has gained tremendous momentum in Q1 due to the ongoing bear market. According to Silververget, the amount of SEN-facilitated transfers decreased from $ 167 billion in Q1 2021 to $ 142 billion in Q1 2022. Similarly, according to broad industry trends, Bitcoin (BTC) and Ethereum (ETH) traded by 33%. – Over $ 1,046 trillion over the year in Q1 2022.

However, the company has also seen a sharp increase in its cryptocurrency storage segment. Due to a partial annual deposit of 0.00%, institutional investors averaged $ 14.7 billion in digital assets, while in Q1 2021 it was $ 6.4 billion.

Cointelegraph previously reported that Silvergate bought Mark Zuckerberg’s stable coin project Dime for $ 182 million. Silvergett now sees the expansion of stable coin infrastructure as a key development area. Currently, like traditional banks, the company earns most of its interest from interest income. That is, to use the borrower’s deposit as collateral, to buy interest-bearing securities, or to deposit money in other banks’ interest-bearing accounts.