US banking giant Goldman Sachs has reportedly offered its first bitcoin-backed loan in the latest sign that Wall Street is embracing institutional crypto adoption. First-Ever Lending Facility Backed by Bitcoin According to a report from Bloomberg, a borrower was able to secure a cash loan from a secured lending facility by offering Bitcoin (BTC) as collateral. A spokeswoman for the bank told the publication that Goldman Sachs lent the cash collateralized by BTC owned by the borrower for the first time. The deal was “interesting” to Goldman because of its structure and 24-hour risk management, she added. Under this arrangement, a bitcoin holder is able to obtain fiat money (such as USD) in exchange for putting up their BTC as collateral to the bank. However, the volatility associated with the cryptocurrency is also risky considering if the price drops, the borrower may be required to increase their collateral, otherwise, they risk getting liquidated. TradFi Firms Flocks to Crypto Goldman is following in the footsteps of other traditional financial firms moving further into the world of cryptocurrencies. Earlier this week, asset management firm BlackRock announced the launch of a blockchain-focused ETF. The same month, the firm also announced its involvement in a $400 million funding round and partnership with Circle, the principal issuer for USDC stablecoin. Similarly, Jefferies Financial Group Inc. is expanding banking service...
