Battle of the Crypto Banks: Silvergate Capital vs. Signature Bank
A lot of retail investors interested in the crypto space focus on the cryptocurrencies themselves, like Bitcoin and Ethereum, or on bitcoin mining companies. But a lot of these investors are missing the burgeoning crypto opportunity in what many often deem as the boring banking space. The crypto banking space enables many institutional crypto traders and crypto exchanges to more efficiently conduct transactions, and helps other crypto businesses like miners get more capital efficient.
While there are not a ton of crypto banks right now, the two main ones are the roughly $12 billion asset Silvergate Capital (NYSE: SI) based in La Jolla, California, and the much larger Signature Bank (NASDAQ: SBNY) based in New York with nearly $108 billion in assets. Let's compare the two and look at which one is the better investment.
Silvergate and Signature, despite their different sizes, are somewhat similar in their innovation in that both banks have developed a real-time payments system that allows parties on the network to conduct transactions instantly, at any time of the day or week. Silvergate's system is called the Silvergate Exchange Network (SEN), while Signature's is called Signet. The U.S. banking system does not operate on a real-time payments system, while cryptocurrencies trade at all times, so these platforms are helpful for those trading cryptocurrencies.
Source Fool.com
