BankProv Partners With Anchorage for Ethereum-backed Loans

Publicly-listed BankProv to offer its institutional clients this new loan product.

article-image

Anchorage founders Nathan McCauley and Diogo Mónica (left); Source: Anchorage

share

key takeaways

  • BankProv says it’s filling a gap for more widely accessible USD financing for those with a primarily digital assets portfolio
  • As the threat of higher capital gains taxes in the US looms on the horizon, more institutions are entering the crypto lending space

As demand for ether grows by the day, NASDAQ-listed BankProv (PVBC), announced today that it will soon offer its commercial clients loans backed by ether.

BankProv, which rebranded last year from Provident Bank to support its nationwide expansion, is offering this in conjunction with digital assets bank Anchorage. According to a release, Anchorage will be delivering the loans while BankProv will be using its infrastructure to provide the insured deposits. 

The loans will offer clients USD for their deposited ether, giving them liquidity when generating yield for the bank on the USD loaned out. This would also give clients a chance to have access to USD liquidity without incurring a taxable event, something that’s on a lot of people’s mind as the Biden Administration has signalled a possible tax crackdown on cryptocurrency is coming.

“We see demand from institutions that have large holdings of Ether and those that need access to working capital for a multitude of reasons. While some need USD as operational capital for their business, others want USD to leverage trades, and others prefer to keep their Ether long-term and don’t want to create taxable events by selling it off,” Diogo Monica, president, and co-founder of Anchorage Digital said to Blockworks in an interview.  

Volatility is always a fear for anyone that holds cryptocurrency, particularly institutions. Monica explained that Anchorage has a sophisticated price monitoring system that actively tracks the value of that collateral, alerting the borrower that additional collateral is needed if the value declines to a certain threshold, and automatically liquidating it to protect the lender’s principal.

But while volatility will always be an issue on the mind of many, this hasn’t deterred institutional investors. As Blockworks has previously reported, institutions are doubling down on ether because of the perception that it is “steeply undervalued” because of the programmability of the Ethereum blockchain. Investors have also taken a keen eye at the staking campaign for Ethereum 2 (ETH 2), which launched last fall, buying in and treating it effectively as an “internet bond”.    

“It’s no surprise we’re seeing a growing interest in lending from institutional players — both in terms of ETH loans and crypto-backed USD loans. Institutions have made a major shift in what they hold, while many still hold Bitcoin for its anti-inflation and capital preservation, demand for ETH is growing as we can see by Bitcoin market dominance decreasing to approximately 42%,” Monica added. 

“The demand is growing faster than the demand for bitcoin collateralized loans. This seems to be a clear trend, and I wouldn’t be surprised if we see other assets STOs others with banks, maybe even NFTs as collateral in the future,” he continued. 

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Featured.png

Research

Helium stands at a pivotal moment in its evolution as a decentralized wireless network, balancing rapid growth, economic restructuring, and global expansion. With accelerated growth in domestic DAUs and Hotspots supporting its network, Helium is leveraging strategic partnerships and innovative proposals to scale internationally. The recent implementation of HIP 138, “Return to HNT,” has unified its token economy under HNT, simplifying participation and strengthening liquidity, while HIP 139’s phase-out of CBRS refocuses efforts on scalable Wi-Fi offload. Meanwhile, governance shifts under HIP 141 raise questions about centralization as Nova Labs consolidates control over the roadmap.

article-image

The DeFi Education Fund has ideas on how the crypto-friendly SEC can bring Commissioner Peirce’s vision to life

article-image

“Be prepared to do more with less,” Framework Ventures’ Michael Anderson said

article-image

Q1 may have been “frustrating,” but things are looking brighter for Q2

article-image

Tokens worth 20% of the current supply of the TRUMP memecoin launched by the president are set to be unlocked tomorrow

article-image

A crypto-industry lawsuit is “moot” now that Joint Resolution 25 has been signed into law

article-image

Fed Chair Powell assured markets that the labor market is in “good place,” dependent on price stability