Banking Giant Goldman Sachs Issues Its First Bitcoin-Backed Loan

Banking giant Goldman Sachs has issued its first bitcoin-backed loan, which could be interpreted that that Wall Street is warming up for crypto. 

According to a Bloomberg report, Goldman Sachs’ secured lending facility accepted bitcoin (BTC) as collateral for a cash loan.

Goldman Sachs spokesperson commented:

“We recently extended a secured lending facility where we lent fiat collateralized on BTC; BTC being owned by the borrower. The interesting piece for us was the structure and the 24-7-365 day risk management.”

Crypto And Wall Street

Overall, Wall Street banks are entering the crypto product offering space after a surge in price and popularity after missing out several years. For Goldman Sachs, which traded its first over-the-counter Bitcoin options in March and has a digital-assets team, the move signals entry into a new business line that’s currently the domain of firms more specialized in crypto. 

Jefferies Financial Group is also expanding banking services for crypto clients. BlackRock joined a $400 million funding round in stablecoin firm Circle this month. Boutique investment bank Cowen Inc. started a digital assets unit earlier this year.