Goldman Sachs Edges Deeper into Blockchain, Offers First BTC-Backed Loan

Goldman Sachs Group Inc. revealed that it has offered its pioneer lending facility supported by Bitcoin (BTC), a huge move by a major financial institution and showing the rapid speed at which Wall Street is adopting cryptos. 

According to the bank’s spokeswoman, the bank lent cash with Bitcoin as collateral to a borrower. This deal was very interesting, according to Goldman Sachs, because of the adopted structure and 24-hour risk management.

Most Wall Street banks are working extra hard to increase crypto offerings following a surge in price and popularity that knocked down the resistance that lasted for more than ten years. For Goldman Sachs, which made its first over-the-counter BTC option in March 2022, the BTC-backed loan heralds a new business line that has remained a “reserve” of specialized crypto firms. Here are other leading firms that offer crypto services: 

  • Jefferies Financial Group Inc is growing its banking services for cryptocurrency customers. 
  • In April 2022, BlackRock Inc. entered a USD 400 million funding round in Circle, a stable coin firm. 
  • Cowen Inc., a boutique investment bank, unveiled a digital assets unit in March 2022. 

According to Damien Vanderwilt, the co-president of Galaxy Digital Holdings, some of the crypto-related services and products by Wall Street include investment banking, crypto trading, and wealth management. He adds that lending to firms that offer crypto assets as collateral is the next major step. 

Crypto-friendly banks, such as Silvergate Capital Corp, are already providing the U.S dollar backed by Bitcoin (BTC). 

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