Cryptocurrency News

Digital Bank Offers Ethereum-Backed Lending to Anchorage Institutions



Crypto Custody Bank Anchorage Digital is expanding its services into crypto-backed loans for institutional investors.

Anchorage customers can now access an Ethereum-backed USD line of credit through its partnership with American commercial bank BankProv.

Anchorage Financing will offer an easy way for investors to work out their Ethereum holdings, allowing them to access USD to meet their needs without liquidating their holdings. Announcement. The crypto custodian also provides staking services for additional yields on Ethereum.

The digital asset bank maintains ETH, which is used as collateral in case the customer is unable to repay the dollar loan. Customers with large ETH holdings will be able to access a larger line of credit. Anchorage already offers bitcoin-backed loans through other capital providers.

According to Anchorage co-founder Diogo Monica, Ethereum-backed loans could be under collateral if the borrower passes a proper risk due diligence check.

BankProve CEO Dave Mansfield said Anchorage’s collateral management technology is “world-class”, adding that it is a trusted partner in the banking industry:

“We firmly believe in our mission and belief that the crypto market should be granted the same access and rights to traditional financing instruments as any other legal, well-capitalized and compliant business in the US.”

Anchorage was the first crypto firm Obtain a Charter from the US National Bank Regulator in January 2021. BankProv is the tenth oldest bank in America, operating for over 200 years as The Provident Bank before a rebrand in 2020.

At the end of February, Anchorage raises $80 million GIC, in a Series C funding round led by Singapore’s Sovereign Wealth Fund, with participation from Andreessen Horowitz and Blockchain Capital. The funding helped custodians assist institutions by bringing crypto to their users and diversifying their corporate treasuries.

In late March, Anchorage teamed up with cryptocurrency trading platform Prometheum Start a fully regulated alternative trading system, or ATS, is specially designed for professional crypto investors.



Source link

findmostly
Avinash is a blogger, Enterprenuer, marketer and author. He is very good affiliate marketer and Product Reviewer.
https://findmostly.com