Silvergate to Continue Working With Regulators Ahead of Stablecoin Pilot Launch
The lender recently bought Meta’s stablecoin tech and assets.
Silvergate Capital (SI) is still planning on a full 2022 launch of its stablecoin but will first focus on regulatory clearance, and then a pilot program, said Chief Strategy Officer Ben Reynolds, speaking at the Canaccord Genuity Digital Assets Symposium.
- The company last month purchased technology and other assets from Diem, the ill-fated stablecoin project from Meta Platforms (formerly Facebook).
- Silvergate will seek to launch and grow its stablecoin project in similar fashion to its Silvergate Exchange Network (SEN), Reynolds said. The SEN allows the bank’s digital currency and institutional investor clients to send U.S. dollars and euros 24/7 between their Silvergate accounts and the accounts of other Silvergate depositors.
- The initiative won’t require a massive new engineering or software investment to launch, Reynolds noted, but instead just incremental additions to those teams.
- Silvergate’s strategy remains the same, said Reynolds: a focus on working with larger companies like Coinbase, Gemini, Square (Block), and other members of the Diem Association. Those platforms will enlist Silvergate to manage the reserve and invest it “appropriately,” and in return have the tokens ready for their users’ digital wallets.
- Silvergate shares are up about 7% Tuesday afternoon. The stock has fallen about 15% this year.
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