Goldman Sachs provides Bitcoin-backed loan

Monday 2 May 2022 13:18 CET | News

Goldman Sachs has offered its first lending facility backed by Bitcoin, in a significant step for a major US-based bank that accelerates Wall Street’s embrace of cryptocurrencies, according to Bloomberg


The secured lending facility lent cash collateralised by Bitcoin owned by the borrower, a spokeswoman for the bank said. The deal was interesting to Goldman because of its structure and 24-hour risk management, she said in an email. 

Wall Street banks are accelerating their crypto offerings after a surge in price and popularity overcame years of prior resistance. For Goldman, which traded its first over-the-counter Bitcoin options in March 2022 and has a digital-assets team, the step signals entry into a new business line that’s currently the domain of firms more specialised in crypto. Jefferies Financial Group is expanding banking services for crypto clients, while BlackRock joined a USD 400 million funding round in stablecoin firm Circle in April 2022. Boutique investment bank Cowen started a digital assets unit in March 2022, Bloomberg reports.

Some of the crypto-related products and services already offered by Wall Street include wealth management, trading, and investment banking. Lending to companies that provide virtual currencies as collateral is reportedly the next step, according to the co-president of Galaxy Digital Holdings. So far, crypto-friendly banks including Silvergate Capital have already provided USD loans backed by Bitcoin, Bloomberg concludes.

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Keywords: Goldman Sachs, Bitcoin, lending, cryptocurrency
Categories: DeFi & Crypto & Web3
Companies: Goldman Sachs
Countries: United States
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DeFi & Crypto & Web3

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