Anchorage <a href="https://medium.com/anchorage/anchorage-digital-adds-ethereum-backed-loans-for-institutional-clients-264fc26225d9" target="_blank" rel="nofollow noopener">provides </a>Ethereum-backed loans to institutions, allowing institutional investors to get USD on loan without having to liquidate their ETH.
<h2>Anchorage Provides Institutions With Ethereum-Backed Loans</h2>
Anchorage clients will now provide a line of USD credit secured by <a href="https://www.cryptoknowmics.com/news/norton360-antivirus-tool-norton-crypto-to-allow-users-to-mine-ethereum/">Ethereum</a> thanks to cooperation with the US commercial bank BankProv.

[embed]https://twitter.com/Anchorage/status/1349440652073844738[/embed]

According to the statement, Anchorage Financing will provide its services to institutions with Ethereum-backed loans, allowing them to obtain USD to meet their demands without liquidating their holdings. The cryptocurrency custodian also provides staking services for additional Ethereum yields.

The digital asset bank keeps the ETH as security if a client is unable to repay the dollar loan. Clients who have a big amount of ETH will be able to acquire a greater line of credit.

According to Anchorage co-founder Diogo Mónica, Ethereum-backed loans may be under-collateralized if the borrower passes adequate risk due diligence processes.

Its collateral management technology is ‘world-class,’ according to Dave Mansfield, CEO of BankProv, and it is a valued partner to the banking industry:

“We truly believe in our objective and feel that the crypto market should be granted the same access and privileges to traditional finance tools as any other lawful, well-capitalized, and compliant business in America.”
<h2>Anchorage Acts As A Cryptocurrency Custodian</h2>
Anchorage was the first cryptocurrency corporation to get a charter from the <a href="https://www.cryptoknowmics.com/news/2022-budget-by-joe-biden-includes-new-cryptocurrency-regulations-proposals/">United States</a>' national bank regulation in January 2021. BankProv is the ninth oldest bank in America, having been in operation for nearly 200 years as The Provident Bank before upgrading in 2020.

Anchorage raised $80 million in a Series C funding round led by GIC, Singapore's sovereign wealth fund, with participation from Andreessen Horowitz and Blockchain Capital in late February. The money enabled the custodian to assist institutions by bringing bitcoin to their users and diversifying their corporate treasuries.

Anchorage partnered with cryptocurrency trading platform Prometheum in late March to establish a fully regulated alternative trading system, or ATS, designed particularly for professional crypto investors.

Anchorage, A Digital Bank, Provides Institutions With Ethereum-Backed Loans

Anchorage provides institutions with Ethereum-backed loans. Institutional investors can borrow USD without having to liquidate their ETH.

Kavya Barua is a voracious learner who is fascinated by crypto and Fintech advancements. Graduated from Janki Devi Memorial College's B.A (Hons) English program at the University of Delhi. She aspires to be a successful professional, having a keen interest in learning and achieving results.

Anchorage, A Digital Bank, Provides Institutions With Ethereum-Backed Loans

Top Picks