Goldman Sachs (GS) has offered its first bitcoin-backed loan in the latest sign that Wall Street is moving further into crypto. Bloomberg first reported on the news.
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Goldman’s secured lending facility allowed a borrower to use bitcoin (BTC) as collateral for a cash loan.
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“We recently extended a secured lending facility where we lent fiat collateralized on BTC; BTC being owned by the borrower,” a Goldman spokeswoman told CoinDesk in an email. “The interesting piece for us was the structure and the 24-7-365 day risk management.”
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Goldman, which has a dedicated digital assets team, traded its first over-the-counter bitcoin options to Galaxy Digital last month.
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Goldman is following in the footsteps of other traditional finance giants moving further into crypto. Last month, Cowen launched a digital assets unit and BlackRock (BLK) participated in the $400 million funding round for USDC stablecoin creator Circle.
