Goldman Sachs (GS) has made its first bitcoin-backed loan as Wall Street continues to invest more in cryptocurrency. Bloomberg was the first to report the news.
- A borrower who takes out a cash loan from Goldman Sachs can choose to put up bitcoin (BTC) as collateral.
- A Goldman spokesperson made the following statement “We have recently expanded a collateralized lending program in which we lend money against the collateral of Bitcoins owned by the borrower.” “We appreciate the structure, as well as the 24-hour risk management.”
- Galaxy Digital was the recipient of Goldman’s first bitcoin options, which were traded last month.
- Goldman Sachs is following in the footsteps of other traditional banking institutions in the cryptocurrency space. Earlier this month, Cowen announced the creation of a digital asset division, while BlackRock (BLK) invested $400 million in stablecoin producer Circle.
- In a separate announcement made early Thursday, Apollo Global Management announced the appointment of Christine Moy, a former JP Morgan employee, as its first head of digital asset strategy.