Coinbase Collateralized Bitcoin for the First BTC-Backed Loan by Goldman Sachs

Coinbase has become the first crypto company to receive bitcoin-backed loans from a traditional banking giant.

Wall Street banking giant Goldman Sachs announced that the first Bitcoin-backed loan was given to Coinbase. However, he did not disclose the amount and other details about the deal.

Bitcoin-backed to Coinbase lending is indicative of Wall Street’s adoption of the asset class.

Coinbase institutional head Brett Tejpaul said that this partnership will strengthen crypto as the bridge between the fiat and crypto economies.


According to Matthew Ballensweig, general manager and co-head of commerce and credit at Genesis, the loan-to-value ratio usually stays in the range of 40% to 60% if Bitcoin is put as collateral. For example, for $100 taken as a loan, there would need to be roughly $167-250 worth of bitcoins locked by the lender as collateral.

Small-scale crypto-friendly banks such as Silvergate Bank and Signature Bank have given crypto-backed loans to many of their customers.

It already seems that the growing demand for Goldman’s cryptocurrencies will increase unbelievably.

The firm announced last month that it plans to add to this offering with OTC Ethereum options. Analysts at the bank cited ETH’s upcoming ‘Merge’ and Proof-of-Stake upgrade as the main catalyst for the upside momentum.

According to its 2021 annual report, Coinbase had more than $566 million in cryptocurrencies, including over $183 million in Bitcoin.

It has $7.1 billion in cash equivalents excluding restricted cash equivalents and customer custody funds.

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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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