Crypto Friendly Bank To Offer Crypto-Backed Loans To Institutions

Silvergate Bank is one of the few traditional financial institutions friendly to cryptocurrency business, as such, it has become the go-to bank used by top crypto firms in the industry which includes top American cryptocurrency exchange Coinbase, Bitstamp, Genesis Trading, Clocktower Capital and Xapo.

It has revealed recently that it intends to offer fiat loads that are collateralized with crypto to institutional clients as part of the Silvergate Exchange Network (SEN)- a payment system specifically designed to crypto exchanges and their big clients.

According to the bank the solution it provides greater capital efficiency for institutional investors clients that wish to transact without needing to move liquidity on and off different exchanges.

In addition to this the bank claims that it will improve liquidity within the order book of our exchange clients, enabling additional trading on their platforms, potentially reducing arbitrage and improving stability of digital assets.

Aside from the new institutional services the bank announced that it will be seeking a BitLicense for the New York State Department of Financial Services in order to launch a limited liability trust company and to become a crypto custodian.