Global Investment Bank Goldman Sachs Offers Its First Bitcoin-Backed Loan – Finance Bitcoin News

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Goldman Sachs Offers First Lending Facility Backed by Bitcoin
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Global investment bank Goldman Sachs has reportedly provided its first cryptocurrency-backed loan. Cash loans are backed by bitcoins owned by the borrower. A Goldman spokesman explained that the deal is of interest to investment banks because of its structure and 24-hour risk management.

Goldman Sachs and Bitcoin-Backed Lending

Global investment bank Goldman Sachs has offered its first bitcoin (BTC)-backed cash loan, Bloomberg reported on Thursday.

A spokeswoman for the bank explained to the publication that the secured lending facility lends bitcoin-backed cash owned by the borrower. She further noted that Goldman was interested in the deal because of its structure and 24-hour risk management.

Goldman Sachs is getting more and more friendly towards cryptocurrencies. In March, the investment bank featured cryptocurrencies, the metaverse and digitization on its homepage. The company sees the metaverse as an $8 trillion opportunity.

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The global investment bank resumed its bitcoin trading desk last March. In May, the cryptocurrency trading team was officially established, and bitcoin derivatives trading was launched. In June, Goldman Sachs expanded its cryptocurrency trading platform to include ether (ETH) futures and options. In March, the bank executed its first over-the-counter crypto transaction.

Goldman Sachs said in January that the price of bitcoin could reach $100,000. “Bitcoin’s applications may be more than just a ‘store of value,'” the bank’s analysts explained, adding that “the digital asset market is much larger than bitcoin’s.”

Bitcoin-backed loans are becoming more and more popular. Microstrategy, a Nasdaq-listed software company, recently secured a $205 million loan from Silvergate Bank backed by the company’s holdings of bitcoin. Microstrategy used the loan to purchase additional bitcoins for its corporate coffers.

What do you think of Goldman Sachs offering bitcoin-backed loans? Let us know in the comments section below.

Kevin Helms

As an Austrian economics student, Kevin discovered 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.

Image credits: Shutterstock, Pixabay, Wiki Commons

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