Bloomberg Law
Dec. 9, 2022, 3:21 PM

An Obscure Bank Found Its Key to Success. Then FTX Collapsed (1)

Max Reyes
Max Reyes
Bloomberg News

Silvergate Capital Corp. was dealing with the same problem many small US banks face: How do you differentiate yourself when larger competitors do everything you do, only better?

The solution it found was to focus on a sector other banks didn’t want to touch: cryptocurrency. Over the course of a decade, the La Jolla, California-based company transformed itself from a bank catering to small businesses into a publicly traded firm known for providing banking services to major crypto clients such as Coinbase Global Inc. and Gemini Trust Co. — as well as Sam Bankman-Fried’s FTX and Alameda Research. ...