Alan Lane, CEO of crypto investment firm Silvergate, cryptocurrency He said that even amid the ongoing turmoil in the markets, Bitcoin (BTC) stands out from other digital currencies.
He pointed to the decline in the volumes of the Silvergate Exchange Network (SEN) as evidence.
Silvergate CEO Sees Hope for Bitcoin (BTC)
“I think Bitcoin is separate from everything else,” Lane said in his mid-second quarter update. This is evident from how well the price is holding up and the fact that we still have an active leverage book that we lend against Bitcoin.”
After the collapse of FTX, the markets were still bearish, Lane said, saying that Silvergate was designed to give customers access to US dollar transfers around the clock.
“Whether deposits rise or fall, we have the liquidity and capital ratios to support volatility,” Lane added.
Silvergate claimed that it was minimally affected by the bankrupt cryptocurrency exchange FTX, with deposits on the exchange accounting for less than 10% of $11.9 billion in client digital asset deposits.
This amount was still enough for investors to be nervous and the company’s shares to fall by 12%.
However, Lane remained optimistic, adding that “there are always buyers, especially in Bitcoin,” adding that “we will get through this, as in previous cycles, and continue to serve the industry.”
Stating that there were no mid-quarter losses or mandatory liquidation for the company’s Bitcoin collateralized lending product, Lane confirmed that collateralized lending will continue to focus solely on Bitcoin.
Regarding the “tokenized dollar” stablecoin project, which Silvergate previously said it would delay launching earlier this year, Lane said regulators are more likely to approve permissioned networks.
*Not investment advice.
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