U.S.-based Silvergate Bank has launched a bitcoin collateralized loan product with Bitstamp as its launch partner. The crypto exchange will act as the bank’s agent to manage and provide custody for bitcoin collateral. The product utilizes Silvergate Bank’s Exchange Network to fund loans and process repayments in real time.
Also read: Regulatory Roundup: EU-Wide Crypto Regulations, New Rules in Europe, US, Asia
Silvergate Bank’s New Product
Silvergate Bank announced on Wednesday that it has launched a new product called SEN Leverage, which uses the Silvergate Exchange Network (SEN) to fund loans and process repayments in real time. Bitstamp, one of the oldest bitcoin exchanges, is the bank’s launch partner. The bank detailed:
SEN Leverage … will allow Silvergate Bank (‘Bank’) customers to obtain U.S. dollar (‘USD’) loans collateralized by bitcoin held at select digital currency exchanges that are also customers of the bank.
Initially, the product will be available to the bank’s institutional clients, with Bitstsamp acting as its…