The institutional cryptocurrency services provider Silvergate has recently come to the conclusion that it will maintain a low level of exposure to the cryptocurrency loan company BlockFi.
On November 28, Silvergate made the deposit connection with BlockFi public by noting that the amount of money involved was “limited to less than $20 million of its total deposits from all digital asset clients.” According to the company’s revenue report, the deposits totaled $13.2 billion in the third quarter.
In addition, Silvergate made it very apparent that BlockFi was not a custodian for the Bitcoin-collateralized leverage loans it offers, and neither the company nor the company’s subsidiary had any assets in BlockFi.
Silvergate’s chief executive officer, Alan Lane, made the following statement in an effort to clear up any lingering misunderstandings: “as the digital asset market continues to develop, I want to underline that Silvergate’s technology was purpose-built to handle stress and volatility.”
Fear, uncertainty, and doubt are the emotional states that give rise to “false and misleading remarks,” which is where Silvergate finds its place in the framework of the market.
Compiled by Coinbold