One of the few go-to financial service providers that are Bitcoin and Crypto friendly, Silvergate Bank, is looking to expand its services to include crypto-currency lending, according to an updated IPO filing.
Loans for institutional Investors
Silvergate Bank provides financial services to some of the industry’s top companies such as Coinbase, Bitstamp, and Xapo. According to a recent IPO filing from the company, they’ve seen an increased demand for crypto-backed loans from companies operating in the Bitcoin space. As a response, the firm is looking to offer fiat loans to their clients using crypto-currencies as the collateral.
Another leader trying to build out infrastructure is Coinbase with their new Coinbase Custody service. CEO Brian Armstrong has talked on twitter about how the custody service is seriously picking up, with $200-400M invested into cryptocurrencies on a weekly basis.
Crypto-backed loans may be something that convinces institutional investors that have been sitting on the sidelines that Bitcoin is not only here to stay, but a safe, alternative investment class.
Would you be interested in cryptocurrency-backed loans? Do you think this will lead to more investors coming into the market? Let us know in the comments below!
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