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Bitcoin
Bitcoin

Goldman Sachs Offers Its First Bitcoin-Backed Loan

Wall Street banking giant Goldman Sachs has announced its first-ever lending facility that has been backed by Bitcoin.

According to the bank’s spokesperson, the collateralized loan facility will issue cash loan collateralized by BTC held by the borrower.

This Regulation will allow crypto holders to buy fiat currencies such as USD using their crypto as collateral.

Big Banks Warming to Crypto

This arrangement is a sign that big banks are embracing crypto and looking to expand their services with investments in digital assets. Goldman and his team bought and sold the first over-the-counter (OTC) Bitcoin options in March. It was the first major US bank to do so.

Goldman has announced that it plans to add to this arrangement with OTC Ethereum options.

According to Mary Rich, global head of digital assets of Goldman Sachs’ private wealth management division, the bank wants to follow up with Morgan Stanley by offering crypto investments for private equity clients.

Major banks are following in the footsteps of specialist companies such as Jefferies Financial Group, which are expanding banking services for their crypto clients. Additionally, BlackRock has made a significant investment for stablecoin issuer Circle, with a contribution of $400 million.

Goldman Sachs Foray Into Crypto

Damien Vanderwilt, co-chairman of Galaxy Digital Holdings, said that accepting crypto assets as collateral is the next step for Wall Street banks in services such as asset management, trade and investment banking. Crypto-centric banks like Silvergate Capital already provide loans for crypto collateral.

The Wall Street giant was pretty optimistic about the cryptocurrency industry until a year ago. After owning a digital asset trading platform, he started stopping it and hitting BTC as well.

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Wall Street

From May 2020, the bank said that Bitcoin is not an asset class. A few months later, Goldman hired a crypto research team and published several bullish reports. He envisioned a $100,000 price tag for BTC and applied for a bitcoin ETF by participating in funding rounds.

Related: Riot Blockchain Will Build Power Station for Bitcoin Miners

About Hama Amefiz

Amefiz is a professional blockchain, cryptocurrency and tech journalist, regular contributor to newsbsc.com who is writing analysis about the latest developments in the cryptocurrency and blockchain space.

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