Crypto Bank Anchorage Introduces Ethereum-Backed Loans

The crypto custodian, Anchorage, intends to incorporate loans backed by the cryptocurrency ethereum as part of its digital collateral options.

The bank aims to offer these loans through BankProv, a subsidiary of Provident Bancorp, and one which was initially known as Provident Bank.

As we speak, Anchorage already provides loans that are backed by Bitcoin via Silvergate Bank.

Georgina Tzanetos, the CEO of BankProv explained how the crypto market ought to be given similar access and rights as traditional financing tools. Legal, well-structured business in America are accorded these privileges and so should the crypto world.

Ethereum’s popularity has been rising in the past couple of months. Many believe that among digital assets, it’s next in line to receive the same level of esteem as Bitcoin.

The recently-announced collaboration between BankProv and Anchorage will certainly help to reinforce Ether’s reputation.

This is particularly so because Anchorage is on a short list of FDIC-insured banks that support and offer this cryptocurrency in its digital products.

Speaking in an interview with CNBC, Kevin O’Leary, Shark Tank money expert, likened Bitcoin to gold and Ethereum to silver.

However, other analysts do not share the same opinion regarding Ethereum. The latter believe that Ethereum still has a long way to go before it hits its climax.

For instance, the analysts at Kraken, which is another crypto exchange platform, recently evaluated Ethereum’s performance.

They discovered that despite the latest price increment, the crypto’s share of the total crypto market has just gotten close to the 18% threshold it achieved earlier in 2021. And even then, this is far away from the 30% mark it attained back in 2017.

Pete Huminston, the manager of Kraken Intelligence, explained that previous performance should not be used to project or dictate a crypto’s performance in the future.

That said, he believes that Ethereum has a great deal of “upside potential” that it’s not tapped into yet.

 

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