The digital assets division of Fidelity Investments has become a custodian provider for Silvergate’s SEN Leverage secured bitcoin lending program.
We’re thrilled to expand the reach of our SEN Leverage product with @DigitalAssets as a custody provider! Together, we enable institutional investors who currently custody their bitcoin with Fidelity Digital Assets easy access to SEN Leverage. https://t.co/nGNJKJeySb pic.twitter.com/EJOOFUNH83– Silvergate Bank (@silvergatebank)
According to the press release, the partnership is expanding its lending offer to institutional investors who hold digital assets with Fidelity Digital Assets.
To finance loans, the bank uses its own payment network – Silvergate Exchange Network (SEN). The digital currency collateral is held by a subsidiary of Fidelity on a secure account in cold storage.
“Using Fidelity Digital Assets, we are combining our lending program with a leading custodian platform, giving investors greater access to capital,” said John Melton, director of digital asset lending at Silvergate.
The bank launched SEN Leverage as a full-fledged product in the fourth quarter of 2020. By its end, the volume of issued loans reached $ 82.5 million. The pilot launch of the Silvergate program was made at the beginning of the year with the participation of the Bitstamp exchange.
Recall that Fidelity Digital Assets in December announced a partnership with the BlockFi landing platform to issue loans secured by the first cryptocurrency.