Anchorage Digital, a crypto custody bank, has announced it is going to expand its services into crypto-backed loans for institutional investors. The bank’s clients are now allowed to access a line of USD credit backed by Ethereum as a result of a collaboration with American commercial bank BankProv.
This represents a really easy way for investors to put their ETH holdings to work, which will let them access USD in order to meet their requirements without having to liquidate their holdings. Furthermore, the crypto custodian is also going to provide staking services for additional yields on Ethereum.
Anchorage holds on to the ETH which has the role of collateral in the case that a client can’t repay the dollar loan. If you have a larger ETH holding, you have the opportunity to access a larger line of credit. The bank is already offering Bitcoin-backed loans via other capital providers.
“We firmly believe in our mission and belief that the crypto market should be afforded the same access and rights to traditional financing tools as any other legal, well-capitalized and compliant business in America,” declared the CEO of BankProv, Dave Mansfield.
Anchorage is known for being the first crypto company to receive a charter from the US national bank regulator in January of this year. BankProv is known for being the tenth oldest bank in the USA.
Source: CoinTelegraph.com