Goldman Sachs issues Bitcoin-backed loan for the first time

Goldman Sachs continues to advance into the crypto segment
Loan granted with BTC collateral for the first time
Coinbase as a borrower

Goldman Sachs appears to have become the first traditional Wall Street bank to issue a loan secured by Bitcoin. This is reported by the news portal Bloomberg.

Borrower no stranger

A borrower received a fiat loan from Goldman Sachs, under which the financial house approved bitcoin as collateral. The borrower is no stranger: the crypto exchange Coinbase is said to have taken out the first BTC-secured loan, according to Bloomberg.

Brett Tejpaul, head of Coinbase Institutional, says the collaboration between the crypto exchange and the bank is a first “step towards recognizing cryptocurrencies as collateral, deepening the bridge between the fiat and crypto economies.”

Further details, such as the amount of the loan or the value of the bitcoins deposited as collateral, were not disclosed.

Goldman Sachs continues to push into the crypto market

Goldman Sachs had increasingly expanded its own involvement in the crypto segment in the recent past. In March, for example, the financial house, together with Galaxy Digital, enabled and carried out the first OTC crypto transaction in the form of a Bitcoin non-deliverable option (NDO). Here, too, Goldman Sachs was the first big bank to dare to take a step forward, because the financial house is taking a greater risk with this, since the bank itself appears as the client in the transactions.

According to the institutional financial services company Arca, which specializes in cryptocurrencies, Goldman Sachs’ foray into this area may only have been a first test balloon that will result in further transactions of this type: “It is much more likely that Goldman sees a great deal of demand for this type of transaction and just testing the water before it makes a bigger leap”.

Editorial office finanzen.net

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