Silvergate, the California based crypto-friendly bank, announced that the cumulative transactional volume within its payment solution, Silvergate Exchange Network (SEN), has hit $100 billion. This year has been bullish for SEN, a trend that the firm attributes to the growing interest in crypto markets. In Q2 alone, SEN scaled its transfer volumes by 30%; the year-on-year (YoY) is also positive 250%, with transactions totaling to $76 billion this year.
SEN, which is barely 3 years old, began as a dollar on-ramping solution, targeting institutional investors who sent money around the clock. Its most recent financial product enables the processing of payments and funding loans. The project has also been integrating digital asset tailored services given the growing demand and shifts towards virtual ecosystems. On this front, Silvergate appears to have made a killing; in fact, the firm’s CEO Alan Lane was quite bullish during the Q2 earnings call.
Lane remains bullish according to this latest SEN milestone update,
“When we created the SEN, we couldn’t have anticipated its rapid, broad adoption across the digital currency industry … This milestone and broad adoption of the SEN further validates the platform’s competitive advantage and its growing network effects.”
It is quite noteworthy that Stablecoins like PAX and USDC has played a big role in SEN’s growth, especially with the DeFi mania, which picked up in May. Silvergate is one of the few banks in America that offers API transaction services through its payments network ‘SEN.’ The bank carries out the due diligence process and boards white-labeled investors into ecosystems such as Ethereum, making it seamless to interact with DeFi markets. Lane said,
“They’re coding our APIs right into their technology stack … It is secure, and 24/7 and you don’t need human intervention when they have coded in the API.”
However, he was also keen to highlight that Silvergate’s role is only to approve prospects on SEN; they can then initiate underlying functions such as loan processing and digital asset services.