The growth of Stablecoins pushes the volume of the Silvergate Exchange Network over $ 100 billion

The growth of Stablecoins pushes the volume of the Silvergate Exchange Network over $ 100 billion - Silvergate Exchange NetworkTransaction volume on the Silvergate Exchange Network (SEN) reached $ 100 billion, with SEN transactions related to bitcoin trading - here the quotation in real time - and stablecoin.

Full throttle growth

Silvergate Bank in La Jolla, California has seen a significant expansion of its payment platform known as the Silvergate Exchange Network, which is open 24/24 to offer fiat bridges for the crypto markets.

For the full year of 2019, the bank recorded approximately $ 33 billion in network transactions compared to $ 76 billion in the first nine months of this year, said Alan Lane, CEO of Silvergate. (The bank did not keep track of how much these volumes were affected by the average price of bitcoin each year.).

For the first and second quarters of 2020, Silvergate announced that its SEN business had outpaced trading activity in the bitcoin markets. “A dollar running through the SEN was growing at an even faster rate than we were seeing in terms of transactions on the bitcoin blockchain,” Lane said.

Until now, the bank has seen growth in SEN transactions matched by an increase in bitcoin volatility, but now SEN transactions have increased despite volatility having declined, thanks to increased adoption of the Silvergate Exchange Network.

The DeFi growth factor

Silvergate also noted a correlation between SEN transactions and large-scale decentralized finance (DeFi) adoption, as it represents the transactional bank for all U.S.-regulated stablecoins such as USDC and PAX, Lane added.

SEN has enabled Silvergate to be one of the few US banks to offer its customers a transaction application programming interface (API). Like authorized investors on Ethereum, customers wishing to transact on SEN must be members of the network, allowing Silvergate to perform due diligence checks such as know-your-customer (KYC) checks before offering an API that would automate transactions. .

“They are coding our APIs directly into their technology stack,” Lane said. "It is safe and works 24/24 and no human intervention is required once it has been coded into the API."

After completing the pilot of SEN Leverage, a bitcoin-backed lending product, Silvergate will become the only bank to offer a lending API. “We're not creating the end-to-end loan process on the API,” Lane said. "But once you are approved and verified, if you are in the SEN and want to take out a loan, you can do it even at night and on weekends."