- Silvergate Capital Corp. closed its doors after months of turmoil, culminating in Federal Deposit Insurance Corp. officials visiting its headquarters to discuss options to avert US banking system's first casualty from the crypto implosion.
- Silvergate was opened in 1988 to make loans to industrial clients but in 2013, it started to transform itself from a typical community bank into one catering to the digital-asset industry.
- The decision to wind down and voluntarily liquidate capped months of turmoil at the bank stemming from its ties to Sam Bankman-Fried’s FTX.
- The bank’s shift from traditional banking into a then-niche area reflected a broader dynamic in the financial industry.
- Silvergate’s unique balance sheet setup — although not uncommon for any bank — proved problematic as the Federal Reserve hiked interest rates.
Silvergate Bet Everything on Crypto, Then It All Evaporated
Silvergate Capital Corp. spent its final days under siege.
Max Reyes
