Goldman Sachs has issued the first loan backed by Bitcoin, Bloomberg has reported.
The lender was attracted by the structure of the transaction and the 24/7 risk management mechanism.
The move marks the full entry of Goldman Sachs into the cryptocurrency market. The deal has been prepared since December 2021. At the time, the media also reported an investment bank’s interest in synthetic products without the spot option of the first cryptocurrency.
Digital-friendly banks Signature and Silvergate are currently offering similar Bitcoin-backed loans.
In 2021, Goldman Sachs offered clients trading in futures and options on Bitcoin and Ethereum. The bank also launched fiat-settled non-deliverable forwards based on the first cryptocurrency.
In March this year, Goldman Sachs and Galaxy Digital conducted an OTC trade with a settled option on Bitcoin.
