Silvergate Bank, a crypto-fiat gateway network designed for financial institutions, saw its revenue and net income grow by 93% and 94% year-over-year, respectively, to $59.9 million and $24.7 million. The company is known for its Silvergate Exchange Network, or SEN, which facilitates USD and euro transfers between cryptocurrency exchanges and institutional investors.
Despite its growth, however, institutional interest in crypto took a significant hit in Q1 due to the ongoing bear market. According to Silvergate, cited by Coin Telegraph, the amount of SEN transfers it facilitated decreased from $167 billion in Q1 2021 to $142 billion in Q1 2022. Simultaneously, as part of broader industry trends, bitcoin (BTC) and ether (ETH) spot trading fell 33% year-over-year to $1.046 trillion in Q1 2022.
Nevertheless, the company also saw a sharp increase in its cryptocurrency storage segment. Partly due to an annualized cost of deposit of 0.00%, institutional investors placed an average of $14.7 billion in digital assets in Silvergate’s hands, compared to $6.4 billion in Q1 2021.