Crypto-friendly Bank Silvergate has partnered with Bitstamp to launch Bitcoin (BTC) leveraged trading.
The collaboration between the twelfth-largest cryptocurrency exchange and Silvergate will see the ushering in of the Bitstamp’s BTC leverage product.
The pilot version of the product, which will be offered only to the selected institutional clients, will be available on the Silvergate Exchange Network (SEN). However, it reportedly would enable real-time, around-the-clock deposits and withdrawal of US dollars.
According to a press release, its aimed at institutional clients and allows them to trade with leverage collateralized by bitcoin.
Its official tweet also explained it is the first partner exchange to support SEN Leverage by Silvergate Bank.
The exchange further expressed its excitement about the partnership. Stating, “We are excited to work with Silvergate to offer leverage trading collateralized by bitcoin to eligible institutional customers.”
Bitstamp is the first partner exchange to support SEN Leverage by @silvergatebank. We are excited to work with Silvergate to offer leverage trading collateralized by bitcoin to eligible institutional customers: https://t.co/deMLyiDTFn pic.twitter.com/cdG5PPyFwx
— Bitstamp (@Bitstamp) January 14, 2020
Crypto-friendly bank Silvergate
The California-based bank Silvergate is known for its friendly and accommodating position towards cryptocurrencies.
In an interview, Silvergate bank’s CEO Alan Lane explained why he chose to work with cryptocurrency companies: “I put two and two together and I thought, well it might disrupt banking long-term, but in the short-term these companies need banks. They’re not doing anything wrong. They’re not doing anything illegal or immoral. If they were, we wouldn’t be banking them.”
Silvergate Bank’s friendliness towards cryptocurrency businesses is seemingly paying off as it has penned partnerships with major cryptocurrency firms.
According to a filing with the US SEC in 2019, the bank served 542 digital currency-related clients. Also, including cryptocurrency exchanges and miners, custodians and global investors, among others. And early this year its new filing shows that the bank is serving 756 cryptocurrency clients, a 15 percent increase since June.
Notably, Bitstamp presently supports five cryptocurrencies for trading (BTC, ETH, LTC, XRP, BCH). Besides, in 2019, it saw an average daily trading volume of around $113 million, following the launch of its lighting network node.