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Silvergate Capital (NYSE:SI) stock plunged 23% in Tuesday afternoon trading, nearing its 52-week lows, after the cryptocurrency bank’s CEO said it’s falling short of its goal to introduce its own stablecoin to market in 2022.
“We’re certainly disappointed that it looks like we’re gonna miss our goal of launching it this year,” Alan Lane said at his company’s third-quarter earnings call, adding that the delay wasn’t related to any technology problems for the project.
Recall in the beginning of 2021 when Silvergate (SI) acquired intellectual property and other tech assets from Diem Group, the stablecoin project founded by Meta Platforms (META) in 2019, for $182M.
Lane noted that SI is working to build up its operational and regulatory compliance to ensure the launch of its stablecoin, which is designed to track the U.S. dollar, goes smoothly.
Shares of Silvergate (SI) had already gapped down prior to Lane’s remarks after the company’s Q3 results disappointed investors as the use of its real-time payments network declined during the quarter and its cost of deposits increased.
See why SA contributor Taylor Carmichael remains “very bullish” about Silvergate’s stablecoin.
