The holding company of cryptocurrency-friendly Silvergate Bank, Silvergate Capital Corporation, declared that the firm plans to supply cryptocurrency-collateralized loans.

In an S1/A type filed with the U.S. Securities and Exchange Commission on August. 15 the bank notes:

“We believe there could also be engaging opportunities to provide digital currency borrowing facilities to deepen our top quality client relationships and further enhance our interest financial gain.”

In the document, the firm states that it found important demand for cryptocurrency-related borrowing. The service would contains the consumer providing crypto assets or U.S. dollars as collateral in exchange for considerably larger credit.

The bank would then "set a moderate lending amount to refine the product, and will build up a risk framework to decrease risk and more create lending models after some time."

The company expressed that it anticipates to offer the crypto-related credit product to institutional clients later this year. Silvergate additionally notes that it found significant desire from its purchasers for the bank “to be involved within the custody and transfer of digital assets between customers.”

Owler estimates Silvergate Bank’s annual revenue to be $30 million.

As Top Market Group reported in March, Silvergate Bank signed on a slew of latest cryptocurrency customers together with cryptocurrency exchanges and miners, custodians and international investors, among others within the fourth quarter of 2018.

In 2018, Silvergate’s deposits derived from cryptocurrency customers reportedly exaggerated by $150.4 million, or around 11.4%.

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