Anchorage Digital, a digital currency custody-providing bank, is now going to extend its cryptocurrency offering for its institutional investors by offering them new services. Reportedly, the digital bank is now going to offer institutional investors the service of loans as well. These loans will be backed by Ethereum (ETH), the second-largest blockchain network in the world.
Anchorage Partners With BankProv
In order to provide loan services to institutional clients, the cryptocurrency custodial bank has teamed up with BankProv, a commercial bank based in the United States. This will let customers get US Dollar (USD) on credit, and for this purpose, they would not have to necessarily liquidate their ether tokens.
A new simple way will be introduced for institutional investors by Anchorage Financing, where they will easily be able to put to work their ETH holdings which will let them get access to US Dollar in a bid to come upon the needs. Moreover, those clients whose Ether holdings are big will be able to get a major line of USD.
The official announcement of the bank also revealed that the digital bank also provides institutional investors the services of cryptocurrency staking as well where they can earn extra income. In addition to that, the bank is already offering loans back by Bitcoin (the leading digital currency in the world in terms of market capitalization).
BankProv’s Chief Executive Officer (CEO) Dave Mansfield commented on this new partnership and offering of Anchorage and called the collateral management technology of this bank remarkable and top-class. Adding more, he stated that they could trust this digital bank for the betterment of the banking field:
“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.”