Bank relies heavily on crypto, supports loans with Ethereum: “Bitcoin will always be gold, Ethereum will always be silver”
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The crypto-custody bank Anchorage is now adding ethereum-backed lending to its digital collateral offering. The bank will provide the crypto-backed loans through BankProv, formerly known as Provident Bank. Anchorage already offers Bitcoin-covered loans through Silvergate Bank.
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BankProv’s CEO said, “We firmly believe in our mission that the crypto market should have the same access and rights to traditional financial instruments as any other legal, well-capitalized and lawful company in America. Anchorage’s collateral management technology is world class, which makes it a trusted partner in the banking industry. ”
Ethereum has been gaining traction over the past few months as many believe it will be the next digital asset to experience a similar appreciation as Bitcoin. BankProv’s partnership with Anchorage is helping to cement Ether’s reputation as it is one of the first FDIC-insured banks to support and offer the digital asset in their products.
Shark Tank money guru Kevin O’Leary recently told CNBC: “Bitcoin will always be gold. Ethereum will always be the silver. ”Others seem to disagree, believing that Ethereum has not yet peaked.
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Analysts at Kraken, a global crypto exchange, believe that Ether’s “dominance” – its total share of total crypto market capitalization – even with the recent price surge is only close to the multi-year high of 18% reached earlier this year, but it remains far from the 30% high achieved in 2017.
Pete Huminston, manager of Kraken Intelligence, added, “Past performance does not indicate future prices, but does suggest the fact that Ethereum is resolutely at the center of the latest activity and innovation in the industry – just like in the previous bull market on ETH. there is a lot of upside potential, ”reports CityAM.
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About the author
Georgina Tzanetos is a former financial advisor who graduated from New York University with a degree in Post-Industrial Capitalist Structures. She has eight years of experience with a focus on asset management, portfolio management, private client banking and investment research. Georgina has written for Investopedia and WallStreetMojo.