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The influence of crypto assets themselves is so huge that they impact the entities and companies related to their operations and raise their value
When it comes to investing in the crypto industry, it needs to be considered that it also includes those crypto companies that are not themselves cryptocurrencies or crypto platforms but are indulged with them by many other links. Such industries could have performing services of payments infrastructure, asset managers, crypto wallets exchanges, or other such means.
These stock groups had a high correlation in the past with the movements of digital assets like bitcoin (BTC), ethereum (ETH), etc. Although it’s also vital to get this that whenever cryptocurrencies struggle, so does this group of stocks; as happened in recent months, there are still some crypto stocks that may not be under the same effect and are screaming to buy.
Among these, the crypto bank with approx $16 billion under asset management, Silvergate Capital, is included primarily that has built Silvergate Exchange Network (SEN). The SEN is a proprietary real-time payment system that facilitates crypto trading across some of the big US cryptocurrency exchanges and traders belonging to institutions.
The crypto bank’s payment system fills the gap created by the nonstop trading of cryptocurrencies in the crypto market and the availability of US payment systems for only limited hours. This ability of SEN makes the trading more efficient by deploying clear and settled transactions instantly. Since Silvergate is one of the earliest in the space, that got him a first-mover advantage which onboarded over 1,500 clients to SEN.
Another considerable stock could be Signature Bank having more than $122 billion in assets. The bank is much bigger than Silvergate but is quite similar to the working in that it also runs a payment system that operates in real-time and facilitates crypto trading, called Signet. Considering Signet launched after SEN, that resulted in a smaller user base which is 1,202 clients on its network in the total, including 160 new ones added in the quarter.
Signature Bank has about $23.43 billion worth of assets and deposits from crypto customers, but it’s unclear how much came through Signet. Several reports stated that Signature doubled the number of such major exchanges that are using it as primary banks in the quarter from four to eight.
Finally, Customers Bancorp would also be a suggestion, the newest player in the space with approximately $19 billion worth of assets under management. This institution has also developed a system for instant payments to support clients in trading cryptocurrencies and serve clients having other goals. Now, as it has cleared since it recently launched, it’s been late in the space.
However, that is not the case because as more traditional financial systems started dabbling into the crypto space, the need for platforms providing infrastructure payments rose along with it. As this is a massive-sized industry, so many clients and exchanges will rely on the services of more than one of these payment services providing networks.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
