Fidelity: expanding credit protection through bitcoin with Silvergate

Fidelity: expanding credit protection through bitcoin with Silvergate

Two crypto-friendly institutions, Fidelity and Silvergate, are cooperating. The result is Bitcoin-backed loans.

Asset manager Fidelity has already been accepting bitcoin as collateral for cash loans since December last year. In addition to the partnership with Bitcoin Superstar crypto lender BlockFi, there is now also a cooperation with Silvergate Bank. This is according to a press release obtained by BTC-ECHO.

These loans from Fidelity are mainly interesting for those investors who want to use their bitcoin holdings without selling them. They also offer new opportunities for hedge funds and bitcoin miners.

Silvergate, for its part, has been offering Bitcoin-backed loans since June. These are available in the Silvergate Exchange Network. Customers are thus able to move their reserves between different crypto exchanges in real time – around the clock. Already during the earnings announcement for the fourth quarter of 2020, Silvergate CEO Alan Lane announced that he wanted to further expand the bank’s payment network.

Fidelity also applicant of bitcoin ETF

With Silvergate, we recognised the opportunity to create a smoother investor experience. We help investors and institutions maximise their capital efficiency. We are also strengthening the digital asset ecosystem through greater integration and collaborations like these

, Christine Sandler, head of sales and marketing at Fidelity Digital Assets, said in the press release. Fidelity had most recently demonstrated its affinity for Bitcoin through its recent application for a Bitcoin ETF.