One of the leading banks for innovative businesses in fin-tech and cryptocurrency, Silvergate, has announced its plans for opening crypto-backed loans for institutions. The San Diego-based institution has officially filed an IPO under the US Securities and Exchange Commission.
In the document, Silvergate Capital affirms that: “there may be attractive opportunities to provide digital currency borrowing facilities to deepen our high-quality customer relationships and further enhance our interest income.” The innovative lending product may be one of the first of its kind, with the main structure of the product focusing on creating crypto-collaterals.
In the filing, it is also noted that Barclays is the financial institution backing the register, and it is not a surprise, as both entities have worked together in the past. The team also expressed that the company is looking to explore more innovative solutions and services for many of the largest U.S. digital currency exchanges and global investors.
The firm enjoys international recognition, with many important startups such as Gemini, Paxos, bitFlyer, and Kraken being banked by Silvergate. The product is expected to be available to the most exclusive customers later this 2019, with massive line credits scheduled for next year. All in all, it seems like new derivatives are getting created when the world most need it. Thumbs up, Silvergate!
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