Goldman Sachs Offers First Bitcoin-Backed Loan

Twitter icon  •  Published 1 year ago  •  Mark Weaden

Goldman Sachs was very active in the crypto space last year, with the long-awaited Bitcoin-Back Loan now available

Goldman Sachs was very active in the crypto space last year, with the long-awaited Bitcoin-Back Loan now available. The new lending facility marks a major step forward for the introduction of cryptocurrencies by Wall Street. 

With the newly appointed mayor of New York, Eric Adams, shaping his vision for the future of the city, including the introduction of the NYCCoin, it’s important that the financial distinct adjust to the changing financial landscape. 

What Does The Loan Offer?

According to an email from a spokeswoman for the bank, the loan will act as a “secured lending facility lent cash collateralized by Bitcoin owned by the borrower.” She went on to state that the deal was interesting to Goldman because of its structure and 24-hour risk management.

We’ve seen a lot of movement from Wall Street banks in recent months, in order to increase their crypto holdings and find a presence in the market. Goldman has been fairly transparent with its intentions, recently trading its first over-the-counter Bitcoin options in March, as well as forming a permanent digital-assets team.

Goldman Sachs aims to create their own digital asset wing, rather than using the services of various other companies specializing in the crypto space. With the strong financial foundations of major banking institutions like Goldman, the transition into digital asset management could be seamless. 

What Are Other Wallstreet Banks Doing?

Fortune 1000 company Jefferies Financial Group Inc. revealed plans to expand its banking services to cater to crypto clients. Venture investment BlackRock Inc. were part of a $400 million funding round in stablecoin firm Circle earlier this month. 

Cowen Inc., a boutique investment bank, began offering a digital assets unit back in March. As well as that, we’ve seen crypto-friendly bank Silvergate Capital Corp. provided U.S. dollar loans backed by Bitcoin. 

Looking at all of these banks, some of their crypto products and services are already offered by Wall Street including wealth management, trading and investment banking. It’s a very exciting time, as the financial world looks to adopt cryptocurrency.

Author

Mark Weaden

Mark Weaden is a British researcher and crypto enthusiast, living in Barcelona. His work has been published on a variety of leading cryptocurrency sites.