Shares of Silvergate Capital (NYSE: SI) jumped as much as 21% out of the gate this morning. While shares have come down since then, the bank still traded much higher as of mid-morning.
Silvergate Capital, which went public in 2019, is a roughly $5.6 billion asset bank based in La Jolla, California. The bank specializes in banking cryptocurrency clients such as institutional traders that trade various digital assets and crypto exchanges through its in-house payments system called the Silvergate Exchange Network (SEN).
SEN is a real-time payments network that can clear transactions in U.S. dollars instantly around the clock, 365 days a year, between two users in the network. This is ideal for institutional crypto traders and crypto exchanges because cryptocurrencies trade around the clock.