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BankProv and Anchorage Digital are partnering to offer Ethereum-backed loans
Jun, 04 2021
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BankProv is a future-ready commercial bank that deals with adaptive and technology for the first banking solutions to emerging markets. It has declared its partnership with Anchorage Digital, the best digital asset platform and anew nationally chartered Digital Asset Bank.
This partnership agrees with Anchorage to bring quality loan products to their institutional clients backed by Ethereum. BankProv and Anchorage have found a position in their mutual undertaking to safely allow forward-thinking companies and investors. It allows accessing the value of this new asset class and answering the market's requirements for more broadly accessible USD financing for crypto-heavy borrowers.
Highlights:
Anchorage Digital is allowing ETH-backed loans through a new partnership with BankProv, a 200-year-old U.S. bank.
The partnership is precisely for institutions that work with the firms.
Anchorage CEO Diogo Monica specified the crypto lending space could quickly accelerate towards supporting a wide variety of assets in addition to Bitcoin.
Digital asset bank Anchorage is constructing its borrowing and lending tools, and it realizes its new ether-backed loans as the path to institutional growth.
But collateralizing in ETH unlocks new doors and the partnership with BankProv targets a dissimilar client base, according to Anchorage CEO Diogo Monica. In an interview with The Block in the past year, Monica mentioned that borrowing and lending is Anchorage's fastest-growing business line. The collaboration with BankProv is one of those developments, and it will exactly target institutional clients.
Institutions have initiated to invest in Bitcoin, but have been slower to accept ETH and decentralized finance (DeFi) projects. As per Monica, the 10th-oldest bank in the U.S. offering ETH-backed loans is a strong hint that the institutionalization of the space is underway.
It will take time for institutions to get relaxed with newer assets, and those assets will have to meet liquidity and volatility requirements for risk management. Still, Monica stated that he envisions a future in which people will be able to place all types of crypto assets to work through lending and borrowers. It will be able to use its assets in requests that exist outside the crypto world.
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Shivangi Mujumdar
CBW - External Analyst
INDIA
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