This new avenue of ETH-backed loans offered by Anchorage will make way for a new client base.
Anchorage as a digital asset bank has been expanding its growth and is now accepting ETH-backed loans as valuable assets to be treated and accepted as collateral. The organization has successfully drawn a partnership with BankProv to extend the credits of denominated US dollars and ETH.
The CEO of Anchorage Digital has said in an interview that the company’s vision is to expand its lending tools and investing in the ETH will certainly bring back potential clients which in turn will make the company secure for longer terms.
Anchorage will be responsible for keeping a check as a custodian of Ethereum (ETH) in case a borrower is unable to pay the loan taken with interest. In layman terms, the bank will simply keep the ETH as a collateral to grant loans to interested clients
The process is not entirely new for Anchorage as the organization has been heavily investing its stake in bitcoin-backed loans with a partnership with Silvergate digital asset bank. Following a similar line of business, Anchorage deals actively in BTC loans where silver gate handles the transactions related to extending the lines of credits denominated in US dollars.
But this new avenue of ETH-backed loans will make way for a new client base where institutional clients can come and invest in the business to seek long-term profits and encroach upon new versions of digital banking.
Why Anchorage Chooses ETH for New Loans Services
Ethereum has been gaining considerable popularity among the relevant sectors of blockchain and cryptocurrency and has been rivaling bitcoin in terms of digital finance and currency.
People have long been identifying and familiarizing with Bitcoin, its pros and cons whereas ETH has been slow to adapt and prosper in the financial domain, Anchorage CEO has assured that the ETH will play an important role in centralizing the financial structure and needs of digital banking.
Partnering with BankProv will provide Anchorage a platform to access the traditional database of clients that BankProv possesses where the organization will have plenty of ways to market crypto as one of the mainstream digital currencies to be adopted and experimented with.
BankProv has also been actively pursuing this idea to be identified as a crypto firm after undergoing through a rebranding process in July, the bank has acquired the status as one of the oldest banks of America. The bank also boasts to become a premium commercial blockchain bank to adapt to the changing future of assets and banking as a whole.