Silvergate’s growth plans rely on a recovery in cryptocurrency markets or rapid stablecoin adoption, the note said, and its two main initiatives are the launch of stablecoin- and bitcoin-backed lending via its SEN Leverage platform. However, said Shaw and team, with stablecoin regulation taking longer than expected and little news on the bank’s planned launch, this initiative may prove to be a “significant drag” on profitability in the medium-term.