LedgerX Ditches Silvergate as Analysts Downgrade Stock Price

Silvergate’s share price “moved in line” with bitcoin’s performance for “most of 2021-22,” according to Kaiko analysts

article-image

Silvergate modified by Blockworks

share

FTX’s LedgerX, the only subsidiary of the now-defunct exchange excluded from its bankruptcy and regulatory woes, told customers it will no longer accept wire transfers from Silvergate Capital. 

In an email sent to clients Wednesday, LedgerX instructed customers to instead use Signature Bank for wire transfers from March 1 onward.

Loading Tweet..

“Silvergate made a name for itself as the bank of choice for some of the largest crypto companies, most notably working with FTX, which accounted for around 10% of crypto-linked deposits,” research analysts from Kaiko wrote in a recent note. 

The switch comes amid a challenging time for Silvergate. In the wake of FTX’s collapse, customers pulled more than $8 billion from the bank, but Silvergate was able to survive by selling assets at a loss — with help from the Federal Home Loan Bank, a lender backed by private capital that supplies lines of credit to distressed companies. 

As of the end of 2022, Silvergate held $4.3 billion of short-term Federal Home Loan Bank advances. Shares of Silvergate, which briefly rose at the end of January, are now down more than 20% since the start of the year. 

“Due to its large crypto exposure, Silvergate’s share price moved in line with BTC returns for most of 2021-22. However, its correlation has weakened significantly in 2023 due to growing legal and regulatory risks around the bank’s dealings with FTX and Alameda,” Kaiko analysts added.

Crypto derivatives shop LedgerX, acquired by FTX’s US arm in October 2021, has been notably absent from FTX’s bankruptcy filings and other legal proceedings. LedgerX, registered with the CFTC since 2017, has so far escaped unscathed. 

Regulators have used the subsidiary as an example of which crypto companies should register with appropriate authorities. 

“We require, in permitting LedgerX to operate, that LedgerX comply with a number of conditions,” CFTC Commissioner Kristin Johnson said in a November appearance after the FTX collapse. “Not $1 of customer assets have been compromised, to the best of our knowledge.”

LedgerX did not respond to Blockworks’ request for comment.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

Bain Capital Crypto and Haun Ventures co-led the round as demand grows for Bitcoin-denominated savings and annuities

by Blockworks /
article-image

NYSE owner’s investment values the prediction market at $8–9 billion, signaling Wall Street’s entry into event-based trading

by Blockworks /
article-image

Pineapple begins deploying its $100 million Injective Digital Asset Treasury, staking INJ to earn yield and fund onchain mortgage ambitions

by Blockworks /
article-image

Staking levels in the ether funds will depend on protocol unstaking queue times and anticipated redemption activity, firm says

article-image

ETF inflows, miner strength, and tightening supply drive Bitcoin past its prior peak amid renewed demand for scarce assets

by Blockworks /
article-image

The Guidestar team, led by Alex Nezlobin, will join Uniswap Labs to enhance automated market maker design and smart order routing

by Blockworks /