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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.
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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.

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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.”

 


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