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.

SPONSORED

 

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

Member Exclusive

First-ever bitcoin ETF BITO launches

  • ProShares' bitcoin ETF does not hold bitcoin directly, but instead invests in the cryptocurrency's futures.
  • The ETF is intended to give exposure to investors who do not want to go through the hassle of buying bitcoin directly.
Subboh Jaffery | October 22, 2021
Member Exclusive

With Extend partnership, Amex wants SMBs to create more virtual cards

  • American Express has teamed up with Extend to launch a virtual card solution for its small business customers.
  • Virtual cards provide security and flexibility for SMBs and can help them improve cash flow.
Ismail Umar | October 12, 2021
Member Exclusive

Buy now, regret later? The tricky relationship between BNPL and credit ratings

  • As BNPL use has surged through the pandemic, consumers’ credit scores have taken a significant hit.
  • Research shows more than a third of BNPL users have fallen behind on their payments and hurt their credit score.
Ismail Umar | October 05, 2021
Member Exclusive

The strange connection between horoscopes and financial advice

  • A person’s horoscope may not determine their future wealth, but a propensity to read their horoscopes might.
  • A survey by N26 found that quite a few US adults count on their horoscopes for financial guidance here and there.
Rivka Abramson | September 28, 2021
Member Exclusive

‘There’s a two-sided integration going on between fiat and crypto’: How banks are gearing up to move into digital currencies

  • Many banks are starting to incorporate digital assets into their services.
  • Further adoption will depend on how federal agencies perceive and regulate the large-scale use of cryptocurrencies.
Ismail Umar | September 24, 2021
More Articles