The American bank Silvergate, known for its friendly attitude to cryptocurrencies, announced plans to launch a new product — loans issued under the security of cryptocurrencies.
The bank filed Form S1/A with the US Securities and Exchange Commission (SEC), in which it noted the attractiveness of loans for companies that can provide collateral in cryptocurrencies.
“We believe that the possibility of issuing loans in digital currencies will make us even more attractive and improve relations with our customers,” Silvergate representatives note.
The firm emphasizes that the bank’s clients express a significant interest in obtaining loans secured by cryptocurrencies. At the same time, the bank plans to conduct a risk assessment in order to offer a product that is adequate to the market.
It is expected that the bank’s institutional clients will be able to receive loans secured by cryptocurrencies this year. At the same time, Silvergate will act as a qualified custodian and will participate in the exchange of cryptocurrencies between the bank’s clients.
Last fall, it was reported that more than 500 companies operating in the cryptocurrency industry have already become Silvergate’s clients