Silvergate bank will expand its services which will include cryptocurrency lending according to the latest IPO filing which we are reading more about in the latest cryptocurrency news below.
The Silvergate bank provides financial services to some of the top companies in the industry such as BitStamp, Xapo, and Coinbase and according to the recent IPO filing from the company they saw increased demand for the crypto-backed loans from other companies that operate with Bitcoin. As a response to that, the company is now looking to offer fiat loans to the clients using cryptocurrencies as the collateral. Silvergate bank uses the Silvergate Exchange network which is a system designed to facilitate transactions between the crypto exchanges and clients. On top of the loans, Silvergate has also expressed a lot of interest in adding stablecoins to its systems since they are not working with them at the moment but according to the document they are holding USD deposits backing several stablecoins.
The Silvergate bank is also considering getting a NY State BitLicense in the previous filings because they want to launch trust companies and become a custodian for institutional crypto funds. One of the most important things for investors is the lack of infrastructure that surrounds the cryptocurrency industry. The custodianship issues and regulatory uncertainties are among the main reasons that make the investors understandably cautious. Once these issues are resolved in a robust manner, we could expect to see some much more money flowing in the bitcoin space. Silvergate wants to solve these issues that are not up to the government to solve by providing a framework for legacy institutions to maintain and purchase securely cryptocurrency funds.
Despite Silvergate bank as we read in the altcoin news there is another leader in the industry-Coinbase with their new Coinbase Custody service. The CEO of the company has talked on Twitter about how the new service will work and stated that more than $200 million is invested from institutional investors on a weekly basis. The crypto-backed loans could be something that will convince the institutional investors who have been sitting outside of the game that Bitcoin is here to stay but more importantly is a safe alternative investment class.
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Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
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