On Thursday the 7th of November, Silvergate – a banking institution focused on the cryptocurrency market-, made its debut as a publicly traded company on the New York Stock Exchange (NYSE). Listed under the ticker SI, the Crypto bank’s official listing comes almost a year after initial reports of the company’s interest in going public came out.
Silvergate, as a banking institution, is no newcomer to the finance sector. The establishment of the bank as a registered institution took place as far back as 1988, and was intended to serve as a platform would springboard innovation. However, the institutions intended services were only put to fruitful use years later when the digital currencies sector started gaining traction.
Since then, Silvergate has cultivated strong relationships with their big name clients like Circle, Coinbase and Kraken, to name a few. These companies were mostly shunned by banking institutions until Silvergate realigned its strategies to suit the cryptocurrency market.
How Was Silvergate’s First Day On Wall Street?
Following SEC approval, The trading of Silvergate securities opened with an impressive 6.2 %increase on the IPO price of $12 USD, by selling at $12.75 USD. This positive sentiment was carried over into tangible momentum that pushed the SI ticker to reaching an intraday high of $13.25 USD within a short time from the start SI stocks being traded.
That put Silvergate securities at 4% above the opening and a whopping 10% above its IPO listing price. However, the price action around SI seems to have cooled down for now, with the price trading below the $12.30 USD mark at the time of writing.
Silvergate’s Secret Weapon?
The Silvergate Exchange Network, or otherwise referred as the SEN, was created in 2017 to serve as an inter-institutional payment mechanism. According to Silvergate:
“ the function of the SEN is to allow participants to make transfers of US-Dollars from their SEN, at the bank, to the bank account of another SEN participant with which a counterparty relationship has been established”
Thus far, Silvergate states that around 77% of the cryptocurrency related businesses it caters to have been signed onto, and have started making use of the company’s proprietary SEN.
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