Institutional-oriented crypto bank Anchorage will launch a USD-secured lending service with deposited Ethereum. BankProv, one of the oldest US banks, will act as a partner.
Crypto companies interested in a loan in US currency will be able to satisfy their needs without liquidating their positions in Ethereum.
Anchorage offers a similar product, but with bitcoin collateral, to customers in partnership with Silvergate. The latter provides debt financing in US dollars, Anchorage - storage of digital gold in the form of collateral.
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In an interview with The Block, the head of the crypto bank Diogo Monica said that the initiative is aimed at reaching a new market segment. Unlike Silvergate, BankProv has more traditional customers, which can be seen as an additional step towards digital asset adoption, he stressed.
“As soon as large investors master bitcoin, it will become more comfortable for them to work with Ethereum. In the future, it will be easier for them to switch to new assets, to work with the basket,” explained Monica.
He stated that he believes in a future in which holders of cryptocurrencies will be able to provide them to work through lending, and borrowers can use assets in applications outside the industry.