Global Investment Bank Goldman Sachs Offers Its First Bitcoin-Backed Loan
Global investment bank Goldman Sachs has reportedly offered to give loans against cryptocurrency. The cash loan will be collateralized by bitcoins owned by the borrower. A spokesperson of Goldman Sachs explained that the deal is interesting to the investment bank due to its structure and 24-hour risk-free management.
Global investment bank Goldman Sachs has offered to give first-ever cash loans against bitcoins owned by the borrower, as reported by Bloomberg on Thursday.
A spokeswoman for the bank explained to the publication that the secured lending facility of cash loans will be backed by the bitcoins held by the borrower. She went on to explain that the deal was fascinating to the investment bank due to the structure and because it was 24-hour risk-free management.
It is well known that Goldman Sachs, has been fond of cryptocurrency. In March, the investment bank website featured cryptocurrency, the metaverse, and the digitalisation on its home page. The investment bank sees the metaverse as an $8 trillion opportunity.
The global investment bank brought back its bitcoin trading feature in March, last year. In May, it formally inducted a cryptocurrency trading team and launched a bitcoin derivatives trading options. In June, Goldman Sachs expanded its trading facility from bitcoin to ether futures and options. In March 2022, the bank executed its first OTC crypto transaction.
In January 2022, Goldman Sachs predicted that the price of bitcoin is likely to scale 100k. "Bitcoin may have applications beyond simply 'a store of value' the bank's analyst explained adding that the digital asset market was much bigger than bitcoins."
Bitcoin-backed loans are becoming popular. The Nasdaq listed software company Microstrategy recently obtained a $205 loan from Silvergate Bank backed by the company's bitcoin holdings. Microstrategy used the loan to purchase additional bitcoins for the company's treasury.
0 Comments