Goldman Sachs Offers First Bitcoin Secured Loan
Goldman Sachs has introduced its first-ever credit facility backed by Bitcoin, an important move for a major US bank accelerating Wall Street's adoption of cryptocurrencies.
A spokeswoman for the bank said the credit facility lent money secured by bitcoin owned by the borrower, and said in an email that the deal was interesting to Goldman because of its structure and need for 24-hour risk management.
Goldman Sachs Begins Trading Bitcoin Options Over-the-Counter
Wall Street banks are ramping up supply of crypto products after their rising prices and popularity wiped out years of previous resistance.
For Goldman, who traded the first Bitcoin options OTC contracts in March and has a crypto-asset team, the move signals entry into a new line of business currently dominated by more crypto-specialists.
Jefferies Financial Group is also expanding its banking services to crypto clients, while BlackRock joined a $400 million funding round in stablecoin firm Circle Coin this month, and niche investment bank Coin launched (Cowen Inc) digital asset unit in March.
Infographic... Will Bitcoin lose its luster and gold shine during war?
Some of the cryptocurrency-related products and services that Wall Street already offers include wealth management, trading and investment banking, and lending to companies that offer virtual currencies as collateral is the next step, Damien Vanderwelt, co-chair of Galaxy Digital Holdings, said recently. .
So far, crypto-friendly banks such as Silvergate Capital Corp have offered dollar loans backed by bitcoin.
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