By
Steve Muchoki
April 19th, 2024
Silvergate Bank will allow Gemini’s customers deposit and withdraw U.S. Dollars from their accounts in real-time. This will help the customers to switch in and out of the crypto markets quickly.
Gemini cryptocurrency exchange, founded by Bitcoin billionaires Winklevoss twins, announced its partnership with Silvergate Exchange Network (SEN), a USD payments platform.
According to the official blog post, SEN will allow Gemini’s institutional customers to deposit and withdraw U.S. Dollars from their accounts in real-time. Gemini’s Joshua Rawlins writes that this activity was previously prohibited during the traditional banking hours. The blog post notes:
“Gemini is fully integrated with SEN’s API, which allows us to process your deposits and withdrawals automatically and instantaneously. By joining SEN, our institutional customers can now move their fiat currency into and out of Gemini as easily as their cryptocurrency.”
With the integration of the cloud-based SEN API, the Gemini exchange can establish counterplay relationships with other members on the network thereby making instantaneous transfers. On the other hand, financial service provider Silvergate Bank is popular for facilitating easy movement of the U.S. Dollars among different cryptocurrency exchanges and crypto investors.
Silvergate Bank’s Form S-1 states:
“The SEN has a powerful network effect that makes it more valuable as participants and utilization increase, leading to 374% growth in SEN transaction volumes in the first six months of 2019 compared to the first six months of 2018.”
Besides, helping customers with the easy movement of their fiat funds, the bank is also exploring new opportunities in the crypto space. The bank recently planned to offer crypto-collateralized loans citing a “significant demand” from its existing customers. The customers are willing to borrow huge money for the bank in order to expand their digital asset portfolio.
However, as per the bank’s planned service, the borrower will have to keep their digital asset holdings or the U.S. Dollar as collaterals and in an amount that is much higher than their line of credit. To implement this project, the bank plans collaborate with several of its exchange clients.
Silvergate Bank is likely to launch this service for its institutional clients by the end of this year. Moreover, it also plans to file an IPO with the United States Securities and Exchange Commission (SEC).
Crypto exchange Gemini is also making new plans to expand its global reach. With its latest announcement of opening its office in Australian, Gemini CEO Tyler Winklevoss said:
“Cryptocurrency is the future of money, and we’re committed to building a bridge to that future in Australia. We are thrilled to continue expanding our global footprint and give Aussies a safe and trustworthy cryptocurrency experience.”