BankProv, a commercial bank for corporate clients that provides solutions and products using the latest technology in domains like cryptocurrency, fintech, etc, has announced that it has partnered with Anchorage Digital to offer lending products.
Thie helps Anchorage to offer lending products to institutional clients backed by Ethereum, which is a first of its kind in the industry. Lending products backed by cryptocurrency are expected to pick up pace in the coming years as they are easy to use and understand for both the lenders as well as those who take the funds.
“We’re pushing our full-service offering for the cryptocurrency community to the next level,” said Dave Mansfield, CEO of BankProv. “We firmly believe in our mission 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.”
The companies want to push these products as a viable alternative to similar products in the fiat world. If they make this push a successful one it will benefit both the companies as well as the users as it would give them funding at very reasonable rates with not many regulatory controls that could suffocate the free flow of funds. These funds could then be put to good use which will only benefit the crypto industry as a whole and associated industries as well.
“Anchorage has always been a proponent for broad participation in digital assets. With Ethereum-backed loans through BankProv, our clients gain new opportunities to put their investments to work,” said Nathan McCauley, CEO of Anchorage. “We selected BankProv for its long commitment to connecting enterprise tech with its commercial bank.”
Anchorage gives access to crypto products for institutions along with custody as well. It’s a federally chartered crypto bank which is the first of its kind. Secure custody for crypto assets is its USP at this time and so with the new lending products, it would naturally align with its custody business. The crypto industry is expected to grow manifold in the coming years with the lending business having a special focus for major investors. With banks continuing to struggle and interest rates at an all-time low, it makes sense for investors to look into crypto lending seriously.