- Secured lending facility lent cash collateralized by Bitcoin
- Move comes as Wall Street warms up to digital assets
The secured lending facility lent cash collateralized by Bitcoin owned by the borrower, a spokeswoman for the bank said. The deal was interesting to Goldman because of its structure and 24-hour risk management, she said in an email.
Wall Street banks are ramping up their crypto offerings after a surge in price and popularity chipped away years of prior resistance.
U.S. banking giant Goldman Sachs, which has roughly $2.5 trillion worth of assets under management, has introduced a Bitcoin-backed Bitcoin loan, according to a Thursday report by Bloomberg. It's the latest sign that Wall Street is warming up to the nascent asset class.
The borrower was able to secure a cash loan from a secured lending facility by offering Bitcoin as collateral, according to the report.
In December, multiple media outlets reported about Goldman's plans to offer Bitcoin-backed loans.
Goldman became one of the first major U.S. to delve into crypto, openly a trading desk for digital currencies back in 2018. Last March, the banking behemoth decided to restart it because of significant demand.
Last month, Goldman made its first over-the-counter cryptocurrency transaction with Mike Novogratz's cryptocurrency bank Galaxy Digital.