Silvergate Bank plans to issue cryptocurrency loans

Silvergate Bank plans to issue cryptocurrency loans

Holding company Silvergate Capital Corporation officially announced plans to launch cryptocurrency-based loan products.

In preparation for the upcoming IPO, the bank filed an application with the US Securities and Exchange Commission to register new securities. Among other things, the document it is said that the provision of loans in digital currency is an attractive opportunity to improve the quality of service and increase the economic performance of the company.

In the application, the bank also indicates that there is significant demand among existing and potential customers who want to borrow funds to buy digital currencies..

According to Silvergate, the new service will require the borrower to deposit crypto assets or US dollars in order to obtain a significantly larger loan. After of this the bank calculates the amount of the credit line, develops a program to minimize risks and repayment schedule.

A new banking product is planned to be launched at the end of 2019.

ICE subsidiary Bakkt, which will start trading in September, also intends to attract institutional investors. deliverable bitcoin futures.

text: Ivan Malichenko, photo: Silvergate

Silvergate Bank plans to issue cryptocurrency loans

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