Silvergate Bank, designed to facilitate the exchange of crypto and other fiat currencies by financial institutions, released its financial results for the first quarter of 2022 on Tuesday. explained. The company’s annual net profit in the first quarter of 2022 increased by 94 percent to $24.7 million, while its revenue increased by 93 percent to $59.9 million. The company draws attention with its Silvergate Exchange Network (SEN), which facilitates dollar-euro transfer between crypto currency exchanges and institutional investors.
Institutional interest in crypto has dwindled significantly due to the ongoing bear market, but the company has continued to grow. As Silvergate Bank noted, the amount of SEN transfers it made fell from $167 billion to $142 billion in the first quarter of 2021. Simultaneously, in the first quarter of 2022, global Bitcoin (BTC) and Ethereum (ETH) trading fell 33% to $1.046 trillion.
In addition, there has been a noticeable increase in the crypto deposit accounts of Silvergate Bank, where people can deposit their crypto money. Institutional investors have increased the amount of their digital assets in the bank due to the 0.00% annual deposit cost the bank offers. The amount of digital assets of the bank, which was $ 6.4 billion in the first quarter of 2021, increased to $ 14.7 billion in the first quarter of this year.
As Cointelegraph previously reported, Silvergate bought Mark Zuckerberg’s stablecoin project Diem for $182 million just after it was dissolved. Silvergate currently sees expanding its stablecoin infrastructure as a key growth area. Despite this, the company derives most of its income from interest income like traditional banks.