Skip to main content

Digital Currency Group Welcomes Bitcoin-Friendly Bank to the ‘DCG Family’

Digital Currency Group Welcomes Silvergate Bank to the 'DCG Family'

This week the ‘bitcoin-friendly’ financial institution Silvergate Bank sold 9.5 million shares that raised a sum of $114Mn USD during the common stock sale. Some of the capital injection was provided by the venture capital firm Digital Currency Group who welcomed Silvergate Bank into the company’s growing list of partners and subsidiaries.

Also read: Indians Look to Buy Bitcoin Overseas as Regulations Tighten

‘Bitcoin-Friendly’ Bank Raises $114 Million in Private Placement

Digital Currency Group Welcomes Silvergate Bank to the 'DCG Family'Silvergate Bank is a financial institution that has bolstered bitcoin-based companies for quite some time. Silvergate was known for providing banking services to crypto-startups when other banks refused to work with those types of companies. According to the company, the bank has a relationship with fifteen cryptocurrency-focused businesses, and in April of last year, Silvergate collaborated with the blockchain surveillance company Elliptic. Moreover, back in 2014 the president and CEO of Silvergate Bank, Alan Lane discussed bitcoin at California Bankers Association meetings.

On February 26 Silvergate revealed it had raised $114Mn and the funds will promote further growth in a nationwide financial tech deposit initiative. “Our recent private placement is a major milestone in the history of Silvergate, increasing our equity capital by over 120%,” said Dennis Frank, Silvergate’s chairman during the announcement. However, the investors who helped raise the capital were not disclosed throughout the bank’s press statements.

“Our greatly increased capital base will support our growth and enable us to continue making investments in technology and people that will improve efficiency and productivity, and expand the products and services offered to our business customers,” Silvergate’s CEO Lane said yesterday.

A Few Hours Later Digital Currency Group Welcomes Silvergate Bank Into the DCG Family

Digital Currency Group Welcomes Silvergate Bank to the 'DCG Family'Then a few hours later the venture capital firm Digital Currency Group (DCG) revealed it had invested in Silvergate’s private placement.

“We are thrilled to welcome Silvergate Bank to the DCG family of companies,” explains DCG to its Twitter followers.        

The New York-based firm DCG created in 2015 has its hands in a lot of cryptocurrency and blockchain based startups within the industry. The company was founded by Barry Silbert, and its 114 investments cover companies like Ledger Wallet, Bitgo, Bitpay, Blockstack, and more. The relationship with Silvergate Bank may help its investment companies with a more robust banking relationship. Many crypto-businesses and bitcoin-based debit card providers have been having difficulties with financial institutions over the past few months. The announcement from DCG concerning investing in Silvergate also follows the venture firm welcoming Poloniex to the DCG family as it has a stake in the company Circle Pay.

“Huge news from DCG portfolio company Circle Pay — We are thrilled to welcome Poloniex to the DCG family,” the company declares.

What do you think DCG investing in Silvergate Bank? Let us know your thoughts on this story in the comments below.

Images via Shutterstock, Silvergate Bank, and DCG.  

The Bitcoin universe is vast. So is Bitcoin.com. Check our Wiki, where you can learn everything you were afraid to ask. Or read our news coverage to stay up to date on the latest. Or delve into statistics on our helpful tools page.

The post Digital Currency Group Welcomes Bitcoin-Friendly Bank to the ‘DCG Family’ appeared first on Bitcoin News.



from Bitcoin News http://ift.tt/2GQFNXg
Labels:

Comments

Post a Comment

Popular posts from this blog

Deep Web Roundup: Dream Adds Monero and Bitcoin Tumbler “Chip Mixer” Launches

The darknet has been quiet of late, which is the way it’s meant to be. No news means no mega busts, honeypots, or mass market shutdowns. Even when it’s out of the spotlight though, the deep web is quietly making news, whether trialling the latest privacy coins or the newest coin mixers that promise to restore a little of the privacy that’s being stripped away from bitcoin users on a daily basis. Also read: U.S. Agency ICE Conducts Investigations That Exploit Blockchain Activity The Battle for Privacy Heats Up Privacy is all relative, but of late there’s been relatively little privacy to be enjoyed by bitcoin users. Blockchain monitoring software is becoming more sophisticated and more common, with U.S. law enforcement agencies using it to profile and hunt down deep web users. Chip Mixer is a relatively new bitcoin tumbler that’s designed to restore some of that privacy. Available on both the clearnet and darknet, the service uses a variety of techniques to obfuscate blockchain m...
10 comments
Read more

International Crypto Exchange Luno Adds Bitcoin Cash Trading

Luno exchange has added bitcoin cash trading to the platform following feedback from its client base. BCH is now only the third cryptocurrency available for trading on the exchange, in addition to BTC and ETH , but more options could be on the way once Luno determines that they are credible enough. Also Read: Bitflyer Adds Bitcoin Cash Trading Across Europe and the US Luno Adds Bitcoin Cash Trading Luno, the London-headquartered company formerly known as Bitx, recently announced that bitcoin cash was made available on its cryptocurrency exchange. Starting from Monday, September 23, customers at Luno are now able to store, buy and sell BCH on the platform. The reason given for adding BCH to the exchange is feedback from users in developing markets that convinced Luno to expand their offering from previously just BTC and ETH . Marcus Swanepoel, CEO of Luno, said , “We are in a new and exciting financial era. Developing economies are leading the large-scale adoption and appli...
Post a Comment
Read more

Ombudsman Receives Complaints About Crypto Investments in Spain

The Spanish ombudsman has been receiving complaints about cryptocurrency and how some Spanish citizens investing in these vehicles have lost everything. In his annual report, Angel Gabilondo recognized the rise of cryptocurrencies as a new problem due to the little or no regulation crypto sees in the country. In the same way, the EU has also warned about these assets recently. Spanish Ombudsman Gives His Take on Crypto Angel Gabilondo, the Spanish ombudsman, has given his take regarding cryptocurrencies and the effects they have on citizens investing in some of these projects. Gabilondo said in his yearly report that cryptocurrencies have become “a new problem” during the year examined, with many people having lost all of their funds invested. The report states : Cryptocurrency exchange companies or platforms are not regulated in the legal system, are not subject to any public supervision system, nor do they benefit from deposit guarantee systems. The affected users that sought...
Post a Comment
Read more