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Goldman Sachs Offers Its First Bitcoin-Backed Loan In Crypto Push
Goldman Sachs Group Inc. offered its first ever lending facility backed by Bitcoin, in a significant step for a major U.S. bank that accelerates Wall Street’s embrace of cryptocurrencies.
Kabir V.
8:37 28th Apr, 2022
  • 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.  


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