Global Investment Bank Goldman Sachs Offers First Bitcoin-Backed Loan CryptoBlog
Global investment bank Goldman Sachs has reportedly offered its first-ever cryptocurrency-backed loan. The cash loan was secured by bitcoins owned by the borrower. A Goldman Sachs spokesperson said the deal is attractive to the investment bank because of its structure and round-the-clock risk management.
Goldman Sachs and Bitcoin-backed loans
Global investment bank Goldman Sachs has offered its first-ever bitcoin (BTC)-backed cash loan, Bloomberg reported Thursday.
A spokeswoman for the bank explained to the publication that the secured lending facility lends money secured by bitcoin owned by the borrower. She further noted that the deal was attractive to Goldman Sachs because of its structure and round-the-clock risk management.
Goldman Sachs is increasingly supportive of cryptocurrency. In March, the investment bank featured cryptocurrencies, metaverse, and digitization on its homepage. The company sees the metaverse as an $8 trillion opportunity.
The global investment bank brought back its bitcoin trading desk in March last year. In May, he officially created a cryptocurrency trading team and launched bitcoin derivatives trading. In June, Goldman Sachs expanded its cryptocurrency trading desk to include ether (ETH) futures and options. In March this year, the bank executed its first OTC crypto transaction.
Goldman Sachs said in January that the price of bitcoin could hit $100,000. “Bitcoin may have applications beyond just a ‘store of value,'” the bank analyst explained, adding that “digital asset markets are much bigger than bitcoin.”
Bitcoin-backed loans are becoming increasingly popular. Nasdaq-listed software company Microstrategy recently secured a $205 million loan from Silvergate Bank, backed by the company’s bitcoin holdings. Microstrategy used the loan to purchase additional bitcoins for its corporate cash.
What do you think about Goldman Sachs offering loans secured by bitcoins? Let us know in the comments section below.
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