Mo.bi - Crypto Currency Tracker logo Mo.bi - Crypto Currency Tracker logo
Seeking Alpha 2022-06-09 11:26:40

Silvergate Capital assigned Equalweight rating at Morgan Stanley

Morgan Stanley analyst Manan Gosalia assumes coverage of Silvergate Capital (NYSE:SI) with an Equalweight rating due to the stock's strong correlation to cryptocurrency prices and volatile markets. Near term, the company stands to benefit from higher interest rates with its growing low-cost deposit base and rising asset yields. "Silvergate (SI) is the most asset-sensitive bank inour coverage, with a 30% benefit to net interest income from the first 100-bp increase in interest rates," Gosalia wrote in a note to clients. Its Silvergate Exchange Network, its proprietary payments platform that facilitates real-time transfer of dollars between digital currency customers, give SI a growing base of non-interest bearing deposits, he said. For the longer term, Silvergate (SI) is seeking to unlock value from a stablecoin offering using its recently acquired Diem platform. Recall that in January, the bank acquired block blockchain payment network assets from Diem Group, the project originally started by

Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.