DCG and Silvergate Bank: A New Partnership
In a recent development that sent ripples through the cryptocurrency community, the Digital Currency Group (DCG) announced an investment in Silvergate Capital Corporation. This includes the crypto-friendly Silvergate Bank, as revealed in a tweet on February 26, 2018. The tweet from DCG couldn’t contain its excitement, stating, “We are thrilled to welcome Silvergate Bank to the DCG family of companies.” This partnership looks promising and could lead to exciting initiatives in the world of fintech.
Understanding the Investment
Silvergate Capital reported selling 9.5 million shares of Silvergate stock through a private placement, raking in approximately $114 million. While the details about the investors weren’t disclosed initially, it’s clear this funding will empower Silvergate Bank to amplify its nationwide fintech deposit initiative and enhance its business banking and residential lending activities.
The Significance of Banking in Crypto
For the crypto sector, finding welcoming banks can feel like trying to locate a unicorn. Has anyone seen one? Just over the weekend, the Bangkok Bank decided to terminate the account of the Thai Digital Asset Exchange, showcasing the ongoing banking struggles faced by cryptocurrency companies. Similarly, several Indian banks tightened their grips, suspending and limiting accounts for crypto exchanges earlier in January.
Tether’s Troubles: A Cautionary Tale
Speaking of hurdles, remember Tether? Back in 2017, all international wires to Tether were put on ice by their Taiwanese banking partners. This incident serves as a reminder that the relationship between cryptocurrency entities and traditional banks can be fraught with challenges.
Exciting News from DCG
Alongside the announcement about Silvergate, DCG spilled the beans on some major news from another portfolio company: Circle, known for its multi-currency mobile-payment app. DCG tweeted about the acquisition of crypto exchange Poloniex, calling it the “Biggest M&A deal in bitcoin/blockchain history.” Talk about a headline grabber!
A Bright Future for Silvergate and DCG
With these strategic moves, both Silvergate and DCG are undeniably stepping into the future armed with fresh capital and ambitious goals. The growth potential in this partnership could pave the way for meaningful advancements in the crypto financial landscape, particularly in fostering smoother banking experiences for cryptocurrency ventures. So, stay tuned; this rollercoaster ride is just getting started!
