of the Goldman Sachs Group Bitcoin (BTC) It has been announced that it will use the cryptocurrency exchange Coinbase for its first lending, supported by
Thus, Coinbase has attracted one of the Wall Street giants to the world of digital assets.
The Bridge Between Fiat Currency and Crypto Economies Has Been Strengthened”
Brett Tejpaul, head of Coinbase Institutional, said in an emailed statement:
“Coinbase working with Goldman Sachs cryptocurrencies It constitutes the first step in its use as collateral, thereby strengthening the bridge between the fiat currency and crypto economies.”
Coinbase did not provide any other additional information with credit details. Speaking last week, a Goldman Sachs spokesperson said that the Bitcoin-collateralized lending was provided by a previously undisclosed institution.
BTC-backed loans are not new to the digital currency industry, but Wall Street is not. Crypto industry-based organizations like Babel Finance allow BTC mining companies to borrow cash, even using mining devices as collateral.
Coinbase Has A Total Of $183 Million In Bitcoin
At the end of last year, Coinbase had a total of $566 million in cryptocurrencies, of which $183 million was BTC. At the same time, the company reported that it had $7.1 billion in cash and cash equivalents.
Cryptocurrency risk fund Arca pointed out that such bilateral agreements are not normally made so confidentially:
“It is likely that Goldman Sachs sees a large demand for this product and is testing it before it enters the market completely.”
Goldman Sachs said in a previous statement that this agreement attracted their attention due to its structure and 24-hour risk management opportunity.
*Not investment advice.