BanksBusinesscoinbase custodyCointelegraph.comcrypto loansLoans

Crypto-collateralized loans may soon bring new investors to space

“Traditional lending services generally do not exist in the digital currency industry, which means there aren’t many lenders for investors to choose from,” said Jon Melton.
Institutional investors will soon be able to receive Bitcoin-collateralized U.S. dollar loans through Silvergate Capital Corporation — the holding company of pro-crypto institution, Silvergate Bank.According to an announcement from Silvergate, Coinbase Custody will be the custodian for loans funded through the bank’s Silvergate Exchange Network, or SEN. The network will provide access to capital through U.S. dollar loans collateralized by Bitcoin (BTC) while Coinbase holds the crypto in cold storage. “Traditional lending services generally do not exist in the digital currency industry, which means there aren’t many lenders for investors to choose from,” said Jon Melton, Silvergate director of digital asset lending. “Our relationship with Coinbase Custody offers institutional investors increased access to capital efficiency so they can take advantage of market opportunities in the digital currency industry.”Silvergate will offer loans starting at $5 million with an initial 12-month term. Such loans could augment or replace traditional funding rounds for firms looking to enter the crypto space.Since first announcing it would explore offering crypto-collateralized loans in 2019, Silvergate’s annual revenue has more than tripled, from $30 million to $91.5 million. The bank said at the time that its clients had significant interest for Silvergate “to be involved in the custody and transfer of digital assets between customers.”In the fourth quarter of 2020, CEO Alan Lane said the bank would be …
Story continues on Cointelegraph

Related posts
BusinessCryptoTrader.TaxTaxes

CryptoTrader.Tax Review: A Guide to Calculating Crypto Taxes

The tax year’s filing deadline is approaching, which means many crypto users will need to submit their returns. While many find filing taxes can be an arduous task, the process gets even more complicated when you have to factor in…
Anthony PomplianoBitcoinCointelegraph.comgoldJim Cramer

Bitcoin made me a 'ton of money' unlike stocks and gold — Jim Cramer

The CNBC host publicly thanks Anthony Pompliano after he made serious returns on a $500,000 BTC investment. CNBC host Jim Cramer has revealed he made “a ton of money” on Bitcoin (BTC) but gold “let him down.”In an episode of…
Business

TIME Magazine CFO Job Posting Requires “Comfort With Bitcoin”

A job posting for the new Chief Financial Officer of TIME Magazine lists “comfort with Bitcoin and cryptocurrencies” under qualifications. TIME Magazine in Crypto News New York-based TIME Magazine is looking for a new CFO with more than seven years…