Facebook’s crypto banking partner integrates Elliptic’s risk management and analytics

Rick Steves

The bank has grown its status to a point that Diem, Facebook’s cryptocurrency project, selected Silvergate to be its exclusive issuer of stablecoin, the Diem USD, in preparation for a pilot.

Silvergate Bank has integrated Elliptic’s cryptoasset risk management and blockchain analytics into its platform to serve more virtual asset services providers (VASPs) and other crypto businesses.

The Elliptic Lens, which screens customers before opening accounts, and the Elliptic Discovery, which assesses financial crime risk when engaging with digital currency exchanges, will be used as valuable tools for the bank’s risk-based compliance framework

Silvergate Bank launched its digital currency initiative in 2013, and since then it has accumulated 1,100+ digital currency and fintech customers.

The bank has grown its status to a point that Diem, Facebook’s cryptocurrency project, selected Silvergate to be its exclusive issuer of stablecoin, the Diem USD, in preparation for a pilot.

By automating risk screening at VASP and wallet levels, Silvergate can continue to scale its business, deliver an efficient customer onboarding experience, and manage the rising cost of compliance as the industry demand for banking services accelerates.

Kate Fraher, COO of Silvergate, said: “Most banks take a one-size-fits-all stance when it comes to crypto businesses deeming them too risky to bank. This is a narrow view as the digital currency industry continues to grow. Applying rigorous controls to risk-based KYC and due diligence is possible through the depth and accuracy of risk exposure data that Elliptic provides on crypto businesses.”

Simone Maini, CEO of Elliptic, commented: “Silvergate Bank has always had the foresight to enable innovation in financial services,providing access to banking services for fast-growing fintech and crypto businesses that need capital and accounts to operate their businesses. Silvergate knows this is critical to the overall development and maturation of crypto as it mainstreams.”

“Silvergate’s banking solutions are supported by a deep-rooted commitment and proprietary approach to regulatory compliance reinforced by Elliptic’s crypto risk data and insights. By having a way to assess a customer’s risk exposure to crypto, Silvergate can make risk-based decisions in line with its policies and controls so it can confidently onboard new crypto customers”, Ms. Maini continued.

A potential digitized global monetary system is likely to have financial institutions relying on solutions like Elliptic Discovery to assess financial crime risk when engaging with crypto exchanges, custodians, and other crypto asset businesses.

The solution drills down to screen crypto wallets in real-time to uncover links to money laundering, terrorist financing, and sanctioned entities when onboarding customers or to support ongoing due diligence.

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