Why Shares of Silvergate Capital Are Jumping Today
Shares of the crypto bank Silvergate Capital (NYSE: SI) traded 16.5% higher as of 11:05 a.m. EDT today after the company announced a new partnership with Facebook's (NASDAQ: FB) yesterday.
Silvergate announced that it will become the exclusive issuer of Facebook's Diem U.S. dollar-pegged stablecoin, formerly known as Facebook's Libra project. Silvergate will also manage the reserve dollars for the Diem.
Stablecoins are cryptocurrencies tied to other assets such as gold or the U.S. dollar in order to provide more stability to the digital currency, but still reap the advantages digital currencies can offer when it comes to payments solutions.
Source Fool.com
