Anchorage has partnered with one of America’s oldest banks to launch Ethereum-backed loans.
Anchorage Adds Lending Product
Anchorage Digital has launched ETH-backed loans.
The digital assets company has introduced the new lending product in partnership with BankProv, one of the oldest banks in the U.S. Anchorage clients can now lock up ETH as collateral and receive a credit line paid in U.S. dollars. Anchorage manages the ETH collateral, while BankProv is responsible for providing the credit lines.
Anchorage offers services like custody, trading, and staking for crypto assets. Similar to the new ETH offering, it also offers a BTC-backed loan product similar with Silvergate. The company describes itself as “the gateway to institutional crypto,” and its client base includes many high-net-worth investors.
The launch of an ETH-backed loan product is significant because it highlights Anchorage’s view of ETH as an institutional asset. Many institutional investors have started to adopt BTC in recent months, but ETH and other digital assets tend to get overlooked. That’s started to change in recent months, with CME Group launching ETH futures and growing interest among so-called crypto whales. ETH also has a big few months ahead, with its EIP-1559 and Proof-of-Stake updates on the horizon. Once those upgrades have shipped, there could be many more ETH-focused products like the one Anchorage has just launched.
Disclosure: At the time of writing, the author of this feature owned ETH, ETH2X-FLI, and several other cryptocurrencies.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Source: Read Full Article