Goldman Sachs has taken another bullish step towards the digital asset space, now offering Bitcoin-collateralized loans to its customers, media house Bloomberg reported Thursday.
Per the report, the Bank provided its first Bitcoin (BTC) backed loan facility after the company provided a cash loan to a borrower with Bitcoin as collateral.
With this, Goldman Sachs became the first Wall Street financial institution to offer cryptocurrency collateral loans usually provided by virtual asset service providers, such as Coinbase, Silvergate Bank, and Figure. A spokesperson told CoinDesk:
“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.”
The megabank has taken some serious steps in the field of cryptocurrencies, blockchain, and Web3. It recently revealed plans to expand its foray into non-fungible tokens (NFTs) and explore the “tokenization of real assets.”
In March 2022, it executed an over-the-counter (OTC) cryptocurrency trade. The bank traded a non-deliverable option, a kind of Bitcoin-linked instrument, in partnership with its trading partner Galaxy Digital Holdings.