Cryptocurrency bank Anchorage has unveiled ether-backed (ETH) loans for institutional investors.
ETH-Backed Loans are Here
In an announcement made yesterday, digital assets bank Anchorage stated it had launched Ethereum-backed loans via Anchorage Financing. This means that from now on, institutional clients at Anchorage will have access to a USD line of credit backed by Ethereum via the bank’s partnership with BankProv.
For the uninitiated, BankProv is the 10th oldest bank in the U.S. and has been in operation for more than 200 years as The Provident Bank prior to its rebranding in 2020.
Commenting on the development, Dave Mansfield, CEO, BankProv, noted:
“We’re pushing our full-service offering for the cryptocurrency community to the next level. 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. Anchorage’s collateral management tech is world class, making them a trusted partner in the banking industry.”
Essentially, with this move, Anchorage Finance has made it easier for crypto-native funds who have investments in Ethereum and a need for capital to put their ETH to work and bring them USD to meet their needs without having to part away with their digital assets.
Rising Institutional Interest in Ethereum
While bitcoin has been the favorite of big institutions such as MicroStrategy, Tesla, among others, Ethereum is slowly catching up to the orange coin.
An increasing number of investors are slowly waking up to the multiple utilities of Ethereum which make ETH more useful than bitcoin which primarily aims to function as a store of value, and, to a lesser extent, as a medium of exchange.
In addition, the Ethereum protocol at large has been generating the most revenue among all blockchain protocols in existence today, which, in turn, adds to its network usage.
As previously reported by BTCManager, several nations are eyeing the second-largest cryptocurrency by market cap very closely including countries like the U.S., Germany, and Turkey.
At press time, ETH trades at $2,638 with a market cap of more than $305 billion.