Crypto-lending startups have offered ethereum-backed loans for some time – ETH makes up 27% of Genesis’ loan book – but this seems to be the first time ETH-backed loans have been extended through an FDIC-insured bank.
“A lot of clients have ethereum that’s highly appreciated, and they can’t get liquidity because no one extends them credit on those assets,” Anchorage co-founder Diogo Mónica said.
With $1.5 billion in assets, BankProv is smaller than some better-known crypto-friendly banks such as Silvergate and Signature. It has, however, recruited from other banks that have worked in the digital-asset industry, including Radius Bank and Metropolitan Commercial Bank.
Anchorage has had the ability to extend ETH-backed loans to its clients, but forming partnerships with other banks is allowing it to scale its crypto-backed lending product, Mónica said.
“On a daily basis there are more banks coming in,” he said.
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