US Silvergate Bank Partners with Crypto Subsidiary FDA to Offer Bitcoin-Backed Loans

Bitcoin

Silvergate Silver is known as one of the leading "crypto-friendly" financial institutions in the United States, providing banking services to the cryptocurrency industry.

Bitcoin-backed loans are a mechanism in Silvergate Silver's loan service "SEN Leverage", which allows institutional clients to take out loans with Bitcoin as collateral. This is a so-called service that allows you to raise funds without selling Bitcoin.

Through this partnership, institutional investors who already use the FDA to deposit Bitcoin (BTC) will be able to obtain loans through Silvergate Silver’s SEN leveraged loan without having to transfer Bitcoin. “Clients who want to maintain long-term positions can now borrow seamlessly without changing custodians,” the bank said in a statement.

Silvergate is the second case after Coinbase Custody, which aims to expand its bitcoin-backed lending services by partnering with different custodians.

SEN Leverage was launched in January last year, and together with the "SEN" account service for institutional investors, the total amount of remittances has been rising. According to data collected by The Block, the remittance amount in the fourth quarter of 2020 will reach approximately US$6.5 billion.

SEN Leverage

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