Crypto custody bank Anchorage Digital is reportedly going to widen the scope of its crypto-supported loans, to include institutional investors.
Specifically, all Anchorage customers now will reportedly have the freedom to tap into a range of USD credit, supported by Ethereum, via a newly formed alliance with U.S. commercial bank BankProv.
Anchorage Financing will reportedly introduce a simplified method for investors to utilize their Ethereum assets, offering them an opportunity to tap into USD to satisfy their demands, at no expense of liquidating their holdings.
The crypto custodian further made staking services available, for additional yields on Ethereum.
Ethereum of the users will reportedly be kept by the digital asset bank as collateral, in case the customer does not have the ability to repay the dollar loan.
Customers with significant ETH assets in their possession will reportedly be able to tap into a bigger line of credit. Anchorage has already been offering Bitcoin-backed loans through other capital providers.
Ethereum-backed loans reportedly have a chance to be subjected to collateralization, should the borrower satisfy appropriate risk due to diligence checks, per Anchorage co-founder Diogo Mónica.
“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.” Dave Mansfield, Head of BankProv, reportedly shared that Anchorage’s collateral management tech is of “world-class” quality, and the firm is a trusted partner across the banking sector.