Bank Bets Big on Crypto, Backs Loans with Ethereum: ‘Bitcoin Will Aways Be the Gold, Ethereum Will Always Be the Silver’
Crypto custody bank Anchorage is now adding ethereum-backed loans to its digital collateral offerings. The bank will provide the crypto-backed loans through BankProv, formerly known as Provident Bank. Anchorage already offers bitcoin-backed loans through Silvergate Bank.
BankProv CEO said, “We firmly believe in our mission that the crypto market should be afforded the same access and rights to traditional financing tools as any other legal, well-capitalized and compliant business in America. Anchorage’s collateral management tech is world class making them a trusted partner in the banking industry.”
Ethereum has gained traction in recent months, as many believe it is the next digital asset poised to receive similar esteem to Bitcoin. BankProv’s partnership with Anchorage helps to solidify Ether’s reputation, as it is one of the first FDIC-insured banks to support and offer the digital asset in its products.
“Shark Tank” money guru Kevin O’Leary recently told CNBC, “Bitcoin will always be the gold. Ethereum will always be the silver.” Others seem to disagree and believe that Ethereum has yet to reach its peak.
Analysts at Kraken, a global crypto exchange, believe that even with the most recent price surge, Ether “dominance” — its total share of the total crypto market cap — is only coming close to the 18% multi-year high achieved earlier this year, but remains far away from the 30% high achieved in 2017.
Manager of Kraken Intelligence Pete Huminston added, “Past performance does not indicate future prices, but the fact that Ethereum remains resolutely at the heart of bleeding-edge activity and innovation in the industry — just as it did in the previous bull market — suggests ETH has plenty of upside potential,” reports CityAM.
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