Bitstamp Surpasses $50 Million in Loan Originations through Silvergate's SEN Leverage

Rhea-AI Summary

On April 27, 2021, Bitstamp announced that it surpassed $50 million in loan originations via Silvergate's SEN Leverage product, designed for the digital currency sector. This milestone demonstrates Bitstamp's growth and strong demand from institutional clients like Alameda Research and Amber Group. The company forecasts loan originations to exceed $250 million by year-end 2021. SEN Leverage enables trading with leverage secured by bitcoin or U.S. dollars, enhancing capital management for institutions, according to Bitstamp's leadership.

Positive

• Bitstamp surpassed $50 million in loan originations through SEN Leverage.
• Strong demand has led to rapid growth and the potential for over $250 million in loan originations by year-end 2021.
• Institutional clients like Alameda Research and Amber Group are utilizing SEN Leverage effectively.

Negative

• None.

LUXEMBOURG, April 27, 2021 /PRNewswire/ -- Bitstamp, the world's longest-running cryptocurrency exchange, announced today that they've surpassed $50 million in loan originations through Silvergate Capital Corporation (NYSE:SI) ("Silvergate")'s SEN Leverage product.

Silvergate, the leading provider of innovative financial infrastructure solutions to the digital currency industry, announced last year that Bitstamp would be the first digital currency organization to offer custody and collateral management through SEN Leverage. Since then, Bitstamp has brought on a number of top institutional customers including Alameda Research and Amber Group and experienced rapid growth due to strong demand for the offering. At this rate, Bitstamp believes it can originate over $250 million in such loans by the end of 2021.

"As more and more corporations put digital assets on their balance sheets, institutions want access to the flexibility of collateralized digital assets, like bitcoin, to manage their positions," said Hunter Merghart, Head of US at Bitstamp. "We've seen incredible demand for this product to help in capital management."

SEN Leverage allows institutional customers to trade any asset on-platform with leverage collateralized by bitcoin or U.S. dollars. Through this engagement, Bitstamp custodies and manages the bitcoin used as collateral. SEN Leverage is powered by the Silvergate Exchange Network ("SEN"), which is used to fund loans and process repayments in near real-time, 24 hours per day, 7 days per week.

Ben Reynolds, Chief Strategy Officer at Silvergate, said, "As an early collateral management and custody provider for SEN Leverage, Bitstamp has worked alongside us to provide an exceptional lending experience for the digital asset industry. We're pleased with the industry's adoption of SEN Leverage so far and look forward to welcoming more institutional customers together."

Institutional Praise
Amber Group, a global crypto finance provider with over $1bn in AUM, spoke about how SEN Leverage and Bitstamp has improved their capital flexibility, saying, "SEN Leverage product has significantly improved our capital utilization for our trading activities on Bitstamp, helping us boost volume further with minimal funding cost."

Bitstamp is dedicated to providing best-in-class service to retail and institutional digital asset investors. The pioneering crypto exchange has built a reputation as a highly reliable platform with the best uptime in their industry and consistently ranks in the top 10 spot markets in terms of volume for almost a decade.

About Bitstamp
Bitstamp is the world's longest-running cryptocurrency exchange, supporting investors, traders and leading financial institutions since 2011. With a proven track record, cutting-edge market infrastructure and dedication to personal service with a human touch, Bitstamp's secure and reliable trading venue is trusted by over four million customers worldwide. Whether it's through their intuitive web platform and mobile app or industry-leading APIs, Bitstamp is where crypto enters finance. For more information, visit www.bitstamp.net.

About Silvergate
Silvergate Capital Corporation (NYSE: SI) is the leading provider of innovative financial infrastructure solutions and services for the growing digital currency industry. The Company's real-time payments platform, known as the Silvergate Exchange Network, is at the heart of its customer-centric suite of payments, lending and funding solutions serving an expanding class of digital currency companies and investors around the world. Silvergate is enabling the rapid growth of digital currency markets and reshaping global commerce for a digital currency future.

Silvergate Contacts:
Natalie Short / Conor Shea
press@silvergate.com

Forward Looking Statements
Statements in this earnings release may constitute forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "will likely result," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "project," "projection," "forecast," "goal," "target," "would," "aim" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry and management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. The inclusion of these forward-looking statements should not be regarded as a representation by us or any other person that such expectations, estimates and projections will be achieved. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. For information about other important factors that could cause actual results to differ materially from those discussed in the forward-looking statements contained in this release, please refer to the Company's public reports filed with the U.S. Securities and Exchange Commission.

Any forward-looking statement speaks only as of the date of this earnings release, and we do not undertake any obligation to publicly update or review any forward-looking statement, whether because of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for us to predict their occurrence. In addition, we cannot assess the impact of each risk and uncertainty on our business or the extent to which any risk or uncertainty, or combination of risks and uncertainties, may cause actual results to differ materially from those contained in any forward-looking statements.

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SOURCE Bitstamp

FAQ

What milestone did Bitstamp achieve regarding loan originations through Silvergate's SEN Leverage?

Bitstamp surpassed $50 million in loan originations through Silvergate's SEN Leverage product.

What is the expected loan origination figure for Bitstamp by the end of 2021?

Bitstamp expects to originate over $250 million in loans by the end of 2021.

Who are some notable institutional customers of Bitstamp's SEN Leverage?

Notable institutional customers include Alameda Research and Amber Group.

How does SEN Leverage support institutions trading digital assets?

SEN Leverage allows institutions to trade with leverage secured by bitcoin or U.S. dollars, improving capital management.