Fidelity Now Extends Bitcoin-Backed Loans Through Silvergate

The custodian began offering cash loans collateralized by bitcoin last December but is now adding Silvergate customers to the mix.

AccessTimeIconMar 29, 2021 at 2:08 p.m. UTC
Updated Sep 14, 2021 at 12:33 p.m. UTC

Silvergate Bank will be the second lender to extend bitcoin-backed loans to investors who custody their crypto with Fidelity.

Fidelity began accepting bitcoin as collateral for cash loans in December after partnering with crypto lender BlockFi. The product targets investors who are interested in using their bitcoin without selling it, hedge funds, miners and over-the-counter trading desks.

Silvergate has been offering bitcoin-backed loans since June through its Silvergate Exchange Network, which allows customers to instantly move dollars between different crypto exchanges and is open even on weekends.

“Like Silvergate, we recognize the opportunity to create a more seamless investor experience by helping institutions maximize capital efficiency, as well as the opportunity to strengthen the digital assets ecosystem through greater integration and collaborations like this,” Christine Sandler, head of sales and marketing at Fidelity Digital Assets, said in a press release.

This is a developing story and will be updated.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC