Global Investment Bank Goldman Sachs Offers Its First Bitcoin-Backed Loan – Goldman Sachs, a global investment bank, is said to have made the world’s first cryptocurrency-backed loan. The borrower’s bitcoin served as collateral for the cash loan. The investment bank is interested in the purchase because of its framework and 24-hour risk management, according to a Goldman Sachs representative.
Bloomberg reported Thursday that global investment bank Goldman Sachs has offered its first-ever bitcoin (BTC)-backed cash loan.
The secured lending facility, according to a bank spokeswoman, lent cash collateralized by bitcoin owned by the borrower. She went on to say that Goldman Sachs was interested in the purchase because of its structure and 24-hour risk management.
Goldman Sachs is becoming more open to cryptocurrency. The investment bank’s webpage covered cryptocurrency, the metaverse, and digitalization in March. The metaverse, according to the business, is a $8 trillion potential.
In March of last year, the global investment bank reopened its bitcoin trading department. It formally established a cryptocurrency trading team in May and began trading bitcoin derivatives. Goldman Sachs added ether (ETH) futures and options to its cryptocurrency trading desk in June.
The bank completed its first OTC crypto transaction in March of this year.
In January, Goldman Sachs predicted that bitcoin’s price would hit $100,000. “Bitcoin may have applications beyond simply being a store of value, said the bank’s analyst, adding that “digital asset markets are far larger than bitcoin.”
Loans backed by bitcoin are becoming increasingly common. Microstrategy, a Nasdaq-listed software company, recently received a $205 million loan from Silvergate Bank, which was secured with the company’s bitcoin assets. The financing was used by Microstrategy to buy more bitcoin for its corporate treasury.