Silvergate Bank will be the second lender to extend bitcoin-backed loans to investors who custody their crypto with Fidelity.
Fidelity began accepting bitcoin as collateral for cash loans in December after partnering with crypto lender BlockFi. The product targets investors who are interested in using their bitcoin without selling it, hedge funds, miners and over-the-counter trading desks.
Silvergate has been offering bitcoin-backed loans since June through its Silvergate Exchange Network, which allows customers to instantly move dollars between different crypto exchanges and is open even on weekends.
“Like Silvergate, we recognize the opportunity to create a more seamless investor experience by helping institutions maximize capital efficiency, as well as the opportunity to strengthen the digital assets ecosystem through greater integration and collaborations like this,” Christine Sandler, head of sales and marketing at Fidelity Digital Assets, said in a press release.
This is a developing story and will be updated.