Crypto

Goldman Sachs Provides The First Bitcoin-Backed Loan

The Giant Goldman Sachs has just revealed the first ever Bitcoin-backed loan

This step is a very important step for the investment bank, as the Wall Street keeps adopting the digital assets. However, the secured lending facility loaned cash collateralized by BTC held by the borrower according to a spokesperson for the bank.

According to Bloomberg, this deal interested Goldman due to its structure and 24-hour risk management. And the crypto owners will be allowed to receive fiat currencies such as US dollar by using the user’s crypto as collateral.

This step is also considered as another signal that the giant banks are adopting the crypto to expand the clients with digital asset investments. It was reported that Goldman has a crypto assets team and traded its first over-the-counter (OTC) Bitcoin options in March, which makes it the first major U.S. bank to do so, the report added.

Goldman has also announced earlier this month that it planned to include that offering with OTC Ethereum options. Moreover, the analysts at the bank have mentioned Ethereum’s upcoming ‘Merge’ and upgrade to proof-of-stake as being bullish for demand for the asset.

According to Mary Rich, the global head of digital assets for Goldman Sachs’ private wealth management division, the bank will follow Morgan Stanley by offering crypto investments for its private equity clients.

many big banks in the world are following the same actions of more specialized firms such as Jefferies Financial Group, which is working on expanding banking services for crypto clients. The BlackRock did also invest recently of $400 million funding round for stablecoin issuer Circle.

Bitcoin is trading in red by the time of writing this article at the price of $38,859.19.

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