The adoption of cryptocurrency has been exemplary, and even centralized institutions are now paying heed. Even the famous investment bank Goldman Sachs has been active in the crypto space but has recently achieved another milestone.
The largest investment bank, Goldman Sachs, has announced the opening of the first-ever loan facility backed by Bitcoin. This announcement of the availability of its first-ever lending facility powered by cryptocurrency marks a significant step forward for the bank and will accelerate Wall Street’s adoption of cryptocurrencies.
According to one of the bank representatives, the secured loan facility offered cash collateralized using the borrower’s Bitcoin holdings. Goldman was enthusiastic about this purchase because of its framework and the 24-hour risk management.
With the increase in the popularity of cryptocurrencies, Goldman Sachs has become more open to the various asset classes. In March this year, the bank published articles on Bitcoin, the metaverse and digital assets on their website. Moreover, according to the investment bank, the metaverse has over $8 trillion worth of untapped potential.
Other Crypto Ventures by Goldman Sachs
In May last year, the central investment bank established an official crypto trading team to start trading Bitcoin derivatives. In June, the bank crypto trading desk was expanded with the inclusion of Ethereum futures and options. However, this year, the bank made its first OTC crypto transaction in March.
Goldman Sachs is looking forward to the expected bull run where Bitcoin is expected to reach the $100,000 mark.
“Bitcoin may have applications other than just a store of value,” the bank’s analyst said, adding that “digital asset markets are significantly broader than bitcoin.”
With this first Bitcoin backed loan, more traditional banks will be inclined to follow the lead and offer more diverse services for the crypto ecosystem.