According to the press release, Fidelity Digital Assets has partnered with Silvergate Capital, a cryptocurrency-friendly bank, with the aim of offering Bitcoin (BTC) collateralized fiat loans to institutional investors.
Bitcoin, secured by Fidelity, can be used to lend US dollars from Silvergate through its loan product SEN Leverage.
Silvergate’s Jon Melton, with the new partnership, says investors will have easier access to capital:
SEN Leverage increased its volume to $ 82.5 million at the end of the fourth quarter.
Fidelity announced in December that they had signed with BlockFi to offer crypto-backed dollar loans.
Fidelity became interested in cryptocurrency mining in 2014, before establishing Fidelity Digital Assets in 2018, which focused entirely on digital assets.