The institutional crypto services provider Silvergate is now on the decision to have minimal exposure to the BlockFi crypto lending firm.
Silvergate, on November 28, disclosed the deposit relationship with BlockFi by stating “limited to less than $20 million of its total deposits from all digital asset customers.” As per the firm’s revenue report, the deposits were $13.2 billion in Q3.
Furthermore, Silvergate also made it clear BlockFi was not a custodian for its Bitcoin-collateralized leverage loans, and neither the firm has investments in BlockFi.
To avoid further confusion, Alan Lane, Silvergate CEO, stated: “as the digital asset industry continues to transform, I want to reiterate that Silvergate’s platform was purpose-built to manage stress and volatility.”
Silvergate finds its space in the context of FUD, meaning fear, uncertainty, and doubt, that directs to “false and misleading statements.”
Also read: Crypto-focused Silvergate’s Revenue Estimates Drop in Q3 2022
