Global Investment Bank Goldman Sachs Offers Its First Bitcoin-Backed Loan
Global investment bank Goldman Sachs has reportedly offered its first-ever loan backed by cryptocurrency. The cash loan was collateralized by bitcoin owned by the borrower. A spokesperson for Goldman Sachs explained that the deal is interesting to the investment bank due to its structure and 24-hour risk management. Goldman Sachs and Bitcoin-Backed Loans
Global investment bank Goldman Sachs has offered its first-ever cash loan backed by bitcoin (BTC), Bloomberg reported Thursday.
A spokeswoman for the bank explained to the publication that the secured lending facility lent cash collateralized by bitcoin that is owned by the borrower. She further noted that the deal was interesting to Goldman Sachs because of its structure and 24-hour risk management.
Goldman Sachs has been increasingly friendly to cryptocurrency. In March, the investment bank featured cryptocurrencies, the metaverse, and digitalization on its homepage. The firm sees the metaverse as an $8 trillion opportunity.
The global investment bank brought back its bitcoin trading desk in March last year. In May, it formally established 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 executedits first OTC crypto transaction.
Goldman Sachs said in January that the price of bitcoin could reach $100K. “Bitcoin may have applications beyond simply a ‘store of value,"” the bank’s analyst explained, adding that “digital asset markets are much bigger than bitcoin.”
Bitcoin-backed loans are becoming more popular. The Nasdaq-listed software company Microstrategy recently obtained a $205 million loan from Silvergate Bank backed by the company’s bitcoin holdings. Microstrategy used the loan to purchase additional bitcoin for its corporate treasury. Tags in this story Bitcoin, Bitcoin backed loan, Crypto, Cryptocurrency, Goldman Sachs, goldman sachs bitcoin, Goldman Sachs lending, Lending backed by Bitcoin
What do you think about Goldman Sachs offering bitcoin-backed loans? Let us know in the comments section below. Kevin Helms
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Blackrock Launches Blockchain ETF Offering Investors Exposure to Crypto Sector FINANCE | 2 days ago While Global Markets Get Spooked by Covid and a Hawkish Fed, Stocks and Crypto Rebound After Musk Buys Twitter FINANCE | 4 days ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleArgentinian Government Advances the Creation of a National CBDC Next articleFormer Google CEO Eric Schmidt Starts Investing in Cryptocurrency — Finds Web3 Economics ‘Interesting’ Show comments More Popular NewsIn Case You Missed ItOman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework
Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)"s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn"t Be Surprised if Stocks Fell 40% Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether