Retail investor interest in Bitcoin pioneered a new trend in 2021. Many global banks, which could not remain indifferent to this interest, started to offer crypto money services to their investors.
While 2021 was a turning point in this context, many US banks, which came to the fore with their criticisms of Bitcoin, also joined this trend.
So much so that banks began to look for ways to use cryptocurrencies in other financial instruments as well as Bitcoin buying, selling and custody services.
According to the news of CoinDesk, the famous banking giant Goldman Sachs and many top US banks have started research to use Bitcoin as loan collateral.
Goldman Sachs and other banking giants are exploring ways to secure Bitcoin, the leading cryptocurrency in cash loans to institutions.
According to the Bitcoin-backed loan scheme, banks participating in this scheme will stay away from the spot Bitcoin market to be used as collateral, and will focus mainly on existing futures Bitcoin ETF products in the US.
Goldman Sachs and other banks are following in the footsteps of crypto-friendly Silvergate and Signature Banks, which announced their Bitcoin-backed lending efforts earlier this year.
Speaking to CoinDesk, a person from a large institutional bank stated that the Bitcoin-backed loan scheme could take place in three to six months.
“We talked to probably half a dozen major banks about Bitcoin-backed loans. Some will implement this loan plan in the next three to six months, others later.
The interesting thing here is that some of these banks will use their own balance sheets to make the loan.”
In addition to large banks such as Goldman Sachs, smaller banks are also looking for ways to accept cryptocurrencies as collateral.
In addition, although US banks are planning for Bitcoin-backed loans, it is a question of whether US regulators will approve. Because the regulations regarding cryptocurrencies in the USA have not yet been clarified, it is not known how the regulators will react to cryptocurrencies secured loans.
*Not investment advice.