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Silvergate Capital Affected Less Than 10% In Total Deposits Of Customers By FTX

Companies have been vocal in the wake of FTX’s collapse, with Silvergate Capital also claiming the exchange’s exposure is limited to deposits.

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To reassure interested parties, the supplier of financial infrastructure solutions to the digital asset market has joined the mass of businesses revealing their FTX exposure. The public was aware of Silvergate Capital‘s exposure to FTX and its affiliated companies.

Less than 10% of the $11.9 billion in total deposits from all clients of digital assets are represented by FTX’s deposits with Silvergate, according to the bank. That could indicate a sum of $1 billion or more, but since those are deposits, FTX is a creditor.

FTX is not a custodian for any of the bank’s SEN Leverage loans that are secured by Bitcoin, according to Silvergate Capital, which claims it has no outstanding loans or investments with the company.

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Silvergate CEO Alan Lane stated:

“Silvergate has no outstanding loans to nor investments in FTX, and FTX is not a custodian for Silvergate’s Bitcoin-collateralized SEN Leverage loans. To be clear, our relationship with FTX is limited to deposits.”

Thus, in the wake of FTX events announcing that CEO Sam Bankman-Fried is no longer holding his position, crypto companies have been clarifying their concerns about their involvement with FTX.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.