Published: 29.04.2022
Article reading time:
1 min.
American investment bank Goldman Sachs has issued its first loan backed by bitcoin. This is another step towards the adoption of cryptocurrencies on Wall Street.
According to Bloomberg, citing a representative of a financial institution, bitcoins stored on the client’s wallet were used as collateral. For a bank, this is an interesting experience due to the structure of the loan and the round-the-clock risks, because bitcoin is traded 24 hours a day, 7 days a week, unlike securities and other typical collateral assets.
Note that such loans are not so rare. For example, at the end of March, MicroStrategy received a $205 million loan secured by bitcoins from Silvergate Bank. However, Silvergate Bank is known for its support of the cryptocurrency industry, but such loans are extremely rare from large traditional financial institutions.
In early April, it was reported that Goldman Sachs plans to provide its clients with access to new cryptocurrency investment products as part of the work of the private wealth management group.
Source: Bits
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