Goldman Sachs Offers Its First Bitcoin(BTC)-Backed Loan
Wall Street banking giant Goldman Sachs has announced its first-ever lending facility that has been backed by Bitcoin(BTC).
The move is a significant step for the asset bank as Wall Street continues to embrace digital investments. According to a spokesperson for the bank, the confirmed lending facility loaned cash collateralized by Bitcoin(BTC) held by the borrower.
Big Bank Warming To Crypto
The move is another sign that major banks are embracing cryptocurrencies and expanding their services to clients investing in digital assets. Goldman already has a crypto assets team and traded its first over-the-counter (OTC) Bitcoin options in March, becoming the first major U.S. bank to do so, the report added. Earlier this month, Goldman announced that it plans to add Ethereum OTC options to this offering. Analysts at the bank have called Ethereum’s upcoming “combination” and proof-of-stake upgrade optimistic for demand for the asset.
Goldman Sachs Foray Into Crypto
The Wall Street giant was far from optimistic about the cryptocurrency industry until a year ago. He went from a digital investment trading platform to stopping them years later and attacking BTC in the meantime. In a specific case from May 2020, the bank said Bitcoin is not an asset class. A few months later, however, Goldman began to change its tune, hiring a crypto research team, issuing multiple bullish reports, forecasting a $100,000 price for BTC, participating in
funding rounds, and, perhaps most notably, showcasing a Bitcoin ETF.