Bitstamp is a Luxembourg-based crypto exchange that has teamed up with Silvergate Bank for their new product called SEN Leverage.
SEN is an abbreviation for Silvergate Exchange Network that allows for 24/7, real-time withdrawal and deposits of US dollars. Silvergate Bank is a California state-chartered bank. Since the launch of the network, some of the largest crypto exchanges have been onboarded, including Gemini and Kraken.
According to a press release, SEN Leverage uses the Network to process repayments and fund loans around the clock. The primary target for the service are institutional clients, as the feature allows them to trade with leverage that uses bitcoin as collateral.
Bitstamp has been growing since its foundation in 2011 and now offers 5 digital coins for trading – XRP, LTC, BTC, ETH and BCH. In 2019, the average daily trading stood at $113 million.
In terms of its partnership with Silvergate Bank, Bitstamp was involved in the development phase of the SEN Leverage and will not be responsible for providing custody for Silvergate’s bitcoin collateral.
This is what the head of business development at Bitstamp shared regarding the SEN Leverage:
We see growing demand from our institutional customers to access greater trading capital. We already use SEN to enable withdrawals and deposits to Bitstamp accounts within minutes at any time and look forward to offering our clients additional flexibility to manage their bitcoin positions through SEN Leverage.
On the other hand, Silvergate Bank’s presence in the crypto space is increasing. According to a filing with the SEC, the bank serves around 760 crypto clients.