Goldman Sachs offers its First-ever lending Facility Backed by Bitcoin

April 29, 2022

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The quest of financial institutions to expand customers’ base and satisfy patronage is why the crypto community is increasingly witnessing crypto-related services by financial institutions.

As reported by Bloomberg, the wall street banking giant, Goldman Sachs has announced its first-ever Bitcoin backed loan, henceforth, borrowers will now be able to secure loans from the financial institution and use Bitcoin as collateral.

According to the bank’s spokesperson in an email sent to Coindesk, “We recently extended a secured lending facility where we lent fiat collateralized on BTC; BTC being owned by the borrower,” she furthered that “the interesting piece for us was the structure and the 24-7-365 day risk management.”

Goldman Sachs, which has a dedicated virtual assets team, traded its first over-the-counter Bitcoin options to Galaxy digital last month, making the bank become the first major US bank to do so,  and now using Bitcoin as collateral, will be first of its kind for the bank. 

More crypto-related services by Financial Institutions 

Financial Institutions across the globe are increasingly offering crypto-related services to improve customers’ satisfaction.

Private equity investment behemoth Apollo Global Management last month, hired a former JP Morgan (JPM) executive Christine Moy to serve as its first head of virtual assets strategy.

Last month, the German Commerzbank submitted application for crypto custody license to widen customer satisfaction.

The European Central bank is also considering central bank digital currency, of which might be effected soon.

Meanwhile, the financial institutions have always been the leaders of crypto critics, with more acceptance of crypto by their patronage, quite a lot of them have been on their toes to integrate digital currencies into their banking system, this is to improve clients’ satisfaction and widen customers’ choice.

Do you think banking giants will finally adopt crypto? Do you think the crypto community will witness more crypto-related services from banking giants as time passes? Kindly express your views by commenting below.

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