Silvergate Capital, a Californian crypto bank, suffered a net loss of $1 billion in Q4, citing a "transformational shift" in the industry.
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In a press release, the bank said that "significant over-leverage in the industry" led to a "crisis of confidence," forecasting a sustained period of lower deposits in the future. In Q4, the Silvergate Exchange Network handled $117.1 billion, a decrease of 47% compared to $219.2 billion in Q4, 2021.
In October last year, Silvergate said it wouldn't launch Facebook's failed stablecoin project Diem in the foreseeable future as the California-based bank is still facing regulatory difficulties. Silvergate Bank CEO, Alan Lane, said the bank wants to be sure that it's on the right track with its tokenized version of the US dollar.
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