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Digital bank Anchorage offers Ethereum-backed loans to institutions

Digital Currencies

Institutional investors can get USD on credit without liquidating their ETH

Crypto custody bank Anchorage Digital is expanding its services into crypto-backed loans for institutional investors

Clients at Anchorage can now access a line of USD credit backed by Ethereum through its partnership with U.S. commercial Bank Pro

Anchorage Financing will introduce a simple way for investors to put their Ethereum holdings to work, enabling them to access USD to meet their needs without liquidating their holdings according to the announcement. The crypto custodian also offers staking services for additional yields on Ethereum

The digital asset bank holds on to the ETH, using it as collateral should a client be unable to repay the dollar loan. Clients with large ETH holdings will be able to access a larger line of credit. Anchorage already provides Bitcoin-backed loans through other capital providers

Ethereum-backed loans may be under collateralized if the borrower passes appropriate risk due diligence checks according to Anchorage co-founder Diogo Mónica

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