Institutional investors will soon be able to receive Bitcoin-collateralized U.S. dollar loans through Silvergate Capital Corporation — the holding company of pro-crypto institution, Silvergate Bank.
According to an announcement from Silvergate, Coinbase Custody will be the custodian for loans funded through the bank’s Silvergate Exchange Network, or SEN. The network will provide access to capital through U.S. dollar loans collateralized by Bitcoin (BTC) while Coinbase holds the crypto in cold storage.
“Traditional lending services generally do not exist in the digital currency industry, which means there aren’t many lenders for investors to choose from,” said Jon Melton, Silvergate director of digital asset lending. “Our relationship with Coinbase Custody offers institutional investors increased access to capital efficiency so they can take advantage of market opportunities in the digital currency industry.”
Silvergate will offer loans starting at $5 million with an initial 12-month term. The firm’s announcement comes as the company behind crypto and fiat wallet and exchange app Abra, said it would be launching a service for crypto users to get cash from theirTitle: Crypto-collateralized loans may soon bring new investors to space
Sourced From: cointelegraph.com/news/crypto-collateralized-loans-may-soon-bring-new-investors-to-space
Published Date: Tue, 23 Mar 2021 16:43:59 +0000