Member Exclusive

BankProv taps into the crypto market with Ethereum-backed loans

  • BankProv is financing Ethereum-backed loans through a collaboration with crypto custody bank Anchorage Digital.
  • Institutional investors can now get USD on credit without liquidating their ETH holdings.
close

Email a Friend

BankProv taps into the crypto market with Ethereum-backed loans

One of the oldest banks in the U.S. has started financing Ethereum-backed loans. BankProv, previously known as The Provident Bank, recently announced a collaboration with Anchorage Digital, the first federally chartered digital asset bank in the country. This collaboration allows Anchorage Digital to provide its institutional clients with a USD line of credit backed by Ethereum.

BankProv, the tenth-oldest bank in the U.S., had been operating for nearly 200 years as The Provident Bank before its modern rebrand in July 2020. Currently holding about $1.5 billion in deposits, the bank has been pushing to recruit crypto firms as clients since its rebrand last year.

Through the new collaboration, institutional clients who use Anchorage Digital for custody are now able to use their Ethereum as collateral for USD loans, without having to liquidate their holdings. Anchorage maintains custody of the ETH, using it as collateral in case a client is unable to repay the dollar loan.

“Our partnership with Anchorage Digital addresses the market’s ongoing need for accessible USD for Ether-heavy borrowers,” said Dave Mansfield, CEO of BankProv. “We are providing $36 million of USD financing in the form of a line of credit to Anchorage, who then lend the USD out to investors with investments in Ethereum and a need for capital.”


This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — only $49/mo. Already an Outlier member? Sign in to your account

0 comments on “BankProv taps into the crypto market with Ethereum-backed loans”

Outlier OpinionsMakers

Finance Everywhere, Member Exclusive

Embedded Briefing: What’s driving the embedded finance boom?

  • Bain & Company estimates that the embedded finance industry will swell up to $7 trillion in transactions by 2026, up from $2.6 trillion in 2021.
  • Payments, lending, and banking were found to be the key drivers of the embedded finance boom. In the future, embedded insurance, tax, and accounting are poised for significant growth.
Subboh Jaffery | October 04, 2022
Green Finance, Member Exclusive

Green Finance Briefing: An intro to environmental sustainability in banking

  • For banks and financial institutions, sustainability initiatives present opportunities as well as risks, according to a new report on the current landscape of environmental sustainability in banking.
  • Sustainability is a business conversation - climate change is bound to create a shift in resources, bringing with it a reallocation of capital away from the status quo.
Iulia Ciutina | September 30, 2022
Blockchain and Crypto, Member Exclusive

Bankchain Briefing: How crypto firm Blockdaemon is bucking the “crypto bro” trend

  • This week, we explore the current state of gender equality in the crypto industry, and what firms in the space can do to counter the long-standing “crypto bro” trend and make way for a more egalitarian future.
  • We also discuss the current state of crypto regulation in the US, and look at how the lack of regulatory clarity is impacting the growth of the industry.
Ismail Umar | September 29, 2022
Member Exclusive, Online Lenders

Lending Briefing: Debit cards are taking over

  • This year, debit cards have emerged as the preferred payment method for the majority of US consumers, dethroning credit cards.
  • Younger generations are behind this switch – even though they're also getting credit cards, Millennials and Gen Zers prefer to pay with debit.
Iulia Ciutina | September 28, 2022
Member Exclusive

Why are regulators cracking down on bank-fintech partnerships?

  • A higher level of regulatory scrutiny is on the way for fintechs and the bank partners on which they rely.
  • Increased regulatory scrutiny could result in a safer and more resilient market to the benefit of consumers, says Brian Graham, partner at Klaros Group.
Lindi Miti | September 27, 2022
More Articles