Global investment bank Goldman Sachs reportedly offered the first ever loan backed by cryptocurrency. The cash loan was secured by bitcoin owned by the borrower. A Goldman Sachs spokesperson explained that the deal was of interest to the investment bank because of its structure and 24/7 risk management.
Goldman Sachs and bitcoin-backed loans
Global investment bank Goldman Sachs offered the first ever cash loan secured by bitcoin (BTC), Bloomberg reported Thursday.
A spokeswoman for the bank explained to the publication that the secured line of credit provides cash collateralized by bitcoin owned by the borrower. She also noted that the deal interested Goldman Sachs because of its structure and round-the-clock risk management.
Goldman Sachs is increasingly friendly to cryptocurrencies. In March, the investment bank introduced cryptocurrencies, the meta-universe and digitalization on its homepage. The company sees the meta-universe as an $8 trillion opportunity.
Last March, the global investment bank brought back its bitcoin trading division. In May it 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 of this year, the bank conducted its first over-the-counter cryptocurrency trade.
In January, Goldman Sachs said the price of bitcoin could reach $100K. “Bitcoin can find uses beyond just being a ‘store of value,'” the bank’s analyst explained, adding that “the digital asset markets are much bigger than bitcoin.”
Bitcoin-backed loans are becoming increasingly popular. Microstrategy, a Nasdaq-listed software company, recently received a $205 million loan from Silvergate Bank secured by bitcoin assets from the company. Microstrategy used the loan to purchase additional bitcoins for its corporate coffers.
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