United States based investment bank and financial service provider Goldman Sachs Group Inc. (GS) has launched its first bitcoin-backed loan as its recent product in the crypto industry. This news was first reported on Bloomberg News on April 28.
According to Bloomberg, the bank’s secured facility will be allowing loan applicants to use Bitcoin as security for the loan.
“We recently extended a secured lending facility where we lent fiat collateralized on BTC; BTC being owned by the borrower. The interesting piece for us was the structure and the 24-7-365 day risk management,” said the bank’s spokesperson.
The bank seems to be emulating the footsteps of other traditional finance giants moving further into crypto. Last month, investment banking company Cowen unveiled a digital assets unit in which Blackrock took part in the $400 million financing round for USDC stablecoin creator Circle.