Monday, November 28, 2022

Crypto Bank Silvergate to Miss Projected Stablecoin Launch Date As Stock Plunges 20%

Leading crypto bank Silvergate Capital has revealed that its earlier plan to launch its own stablecoin in the year running may no longer be achievable. Although, according to the firm’s CEO, Alan Lane, the company will keep working hand-in-hand with relevant regulators to bring the goal to reality.

Silvergate Cites Reason For Delay

Lane revealed that the firm was behind schedule in its stablecoin plans, during Silvergate’s Q3 earnings conference earlier today. He said partly:

“We’re certainly disappointed that it looks like we’re gonna miss our goal of launching it this year.” 

Despite the slight setback, however, Lane insists that the firm is working earnestly to ensure a seamless launch. According to him, Silvergate will continually seek to comply with relevant rules and regulations that will give it a soft landing when the time is right.

Lane was also quick to note that the delay is mostly about regulation and has nothing to do with technical issues of any sort.

Silvergate acquired Facebook’s Diem stablecoin project alongside its other assets at the start of the year. According to the official statement at the time, the firm said it would “further invest in its platform and enhance its existing stablecoin infrastructure.”

But while things may not have panned out as expected, Lane strongly believes that Silvergate’s position amongst its peers is not in doubt. He believes Silvergate will still be one of the first banks to launch its stablecoin.

Stock Falls 20%

Meanwhile, Tuesday’s trading session did not turn out well for Silvergate shares. The stock plunged by more than 20% following news of the stablecoin setback and a Q3 earnings miss report. The company reported a net income of $1.28 per share for Q3. And though that was positive when compared to last year’s $0.88 per share, it still missed the average estimate ($1.38 per share) of analysts.

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