Goldman Sachs Issued Its First Bitcoin-Backed Loan

by in Cryptocurrency News

Goldman Sachs Bitcoin loan

New-York headquartered international investment bank Goldman Sachs allowed a borrower to get a cash loan by using BTC as collateral.

Related: Fidelity Presented the First Crypto Retirement Savings Fund

A release by Bloomberg says the loan was interesting to the institution due to its structure and risk management. This is an essential step by a leading bank that can boost Wall Street's crypto adoption.

In March, Goldman Sachs together with Galaxy Digital traded its first OTC Bitcoin options. In April, Managing Director at Goldman Sachs, Mathew McDermott said that the institution is experimenting with real assets tokenization through NFTs.

GoldMan also took part in the $400 M funding round of Circle, which stands behind the development of the stablecoin USDC.

Other leading US banks such as JPMorgan and Morgan Stanley have dedicated groups for the crypto sector.

As interest in crypto continues to grow, the number of crypto products and various offerings by financial services companies is rising. Lately, Fidelity added Bitcoin to its retirement savings plan 401(k). The global crypto market cap now stands at around $1.81 trillion, with Bitcoin market dominance index of 41.59%.