Silvergate Bank Experiments with Crypto loan

The company’s CEO, Alan Lane, said during Tuesday’s conference call that Silvergate Capital (SI) is open to exploring additional opportunities in regards to expanding its bitcoin lending program.

Bitcoin and Silvergate

MicroStrategy, a software company led by bitcoin maximalist Michael Saylor, received a $205 million bitcoin-based loan from Silvergate bank last month.

Alan Lane, CEO of Silvergate, commented on the event:

The SEN Leverage team is delighted to add MicroStrategy to our growing list of borrowers. Their innovative approach to financial management is a great example of how institutions can use bitcoin to support and grow their businesses.

Now it appears that the bank wants to do more in this area.

“This is the perfect time to become a bitcoin banker,” Lane said.

MicroStrategy obtained the loan through the Silvergate Exchange Network Leverage Program, a platform that allows companies to lend against their bitcoin holdings.

Banks with other plans

Additionally, Silvergate said the launch of its own stablecoin this year will proceed on schedule. However, the exact date has yet to be set. The board also said it is considering how it will manage the coin’s reserves.

Earlier this year, Silvergate announced that it was acquiring Diem, a stablecoin project that belonged to Meta (formerly Facebook).

In order to make the most of barrier-free money flow, we identified the need for a regulated US dollar-based stablecoin. We intend to do this by launching the stablecoin in 2022, which will enable us to leverage the assets we’ve acquired and our existing technology.

– the bank said.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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