{"id":208998,"date":"2021-03-23T19:43:59","date_gmt":"2021-03-23T16:43:59","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/crypto-collateralized-loans-may-soon-bring-new-investors-to-space\/"},"modified":"2021-03-23T19:43:59","modified_gmt":"2021-03-23T16:43:59","slug":"crypto-collateralized-loans-may-soon-bring-new-investors-to-space","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/crypto-collateralized-loans-may-soon-bring-new-investors-to-space\/","title":{"rendered":"# Crypto-collateralized loans may soon bring new investors to space"},"content":{"rendered":"

“# Crypto-collateralized loans may soon bring new investors to space <\/strong>”
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Institutional investors will soon be able to receive Bitcoin-collateralized U.S. dollar loans through Silvergate Capital Corporation \u2014 the holding company of pro-crypto institution, Silvergate Bank.<\/p>\n

According to an announcement from Silvergate, Coinbase Custody will<\/a> be the custodian for loans funded through the bank\u2019s Silvergate Exchange Network, or SEN. The network will provide access to capital through U.S. dollar loans collateralized by Bitcoin (BTC) while Coinbase holds the crypto in cold storage. <\/p>\n

“Traditional lending services general<\/a>ly do not exist in the digital currency industry, which means there aren\u2019t many lenders for investors to choose from,” said Jon Melton, Silvergate director of digital asset lending. “Our relationship with Coinbase Custody offers institutional investors increased access to capital efficiency so they can take advantage of market opportunities in the digital currency industry.”<\/p>\n

Silvergate will offer loans starting at $5 million with an initial 12-month term. Such loans could augment or replace traditional funding rounds for firms looking to enter the crypto space.<\/p>\n

Since first announcing it would explore offering crypto-collateralized loans in 2019, Silvergate\u2019s annual revenue has more than tripled<\/a>, from $30 million to $91.5 million. The bank said at the time that its clients had significant interest for Silvergate “to be involved in the custody and transfer of digital assets between customers.”<\/p>\n

In the fourth quarter of 2020, CEO Alan Lane said<\/a> the bank would be expecting \u201cincreased demand\u201d for these loans in 2021. Though the number of digital currency deposits grew by $2.9 billion over the same period, the price of Silvergate Capital Corporation stock has been volatile in the first quarter of 2021, reaching an all-time high of $176.27 on Feb. 16 but falling 40% within three weeks. At the time of publication, NYSE:SI is valued at $148.90.<\/p>\n