Goldman Sachs Makes Its First Bitcoin-Backed Loan

The global investment bank allowed a borrower to use the cryptocurrency as collateral for a cash loan.

Apr 28, 2022 at 8:41 p.m. UTC
Updated Apr 28, 2022 at 9:33 p.m. UTC

Brandy covers crypto-related venture capital deals for CoinDesk.

Goldman Sachs (GS) has offered its first bitcoin-backed loan in the latest sign that Wall Street is moving further into crypto. Bloomberg first reported on the news.

  • Goldman’s secured lending facility allowed a borrower to use bitcoin (BTC) as collateral for a cash loan.
  • "We recently extended a secured lending facility where we lent fiat collateralized on BTC; BTC being owned by the borrower," a Goldman spokeswoman told CoinDesk in an email. "The interesting piece for us was the structure and the 24-7-365 day risk management."
  • Goldman, which has a dedicated digital assets team, traded its first over-the-counter bitcoin options to Galaxy Digital last month.
  • Goldman is following in the footsteps of other traditional finance giants moving further into crypto. Last month, Cowen launched a digital assets unit and BlackRock (BLK) participated in the $400 million funding round for USDC stablecoin creator Circle.
  • Earlier Thursday, news broke that private equity investment behemoth Apollo Global Management had hired former JPMorgan (JPM) executive Christine Moy to serve as its first head of digital assets strategy.

UPDATE (April 28, 21:33 UTC): Updated sourcing and added comments from Goldman Sachs.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Brandy covers crypto-related venture capital deals for CoinDesk.

Brandy covers crypto-related venture capital deals for CoinDesk.

Trending

1
Oasis Pro Raises $27M for Crypto Securities Trading Platform

CEO Pat LaVecchia, a former MakerDAO compliance adviser, said Oasis Pro is in the “early stages” of integrating with DeFi platforms.

CEO Pat LaVecchia, a former MakerDAO compliance adviser, said Oasis Pro is in the “early stages” of integrating with DeFi platforms.

2
UST Won't Be the End of Algorithmic Stablecoins

The trail for a monetary "holy grail" continues, despite Terra’s collapse. So what do we do about it?

The trail for a monetary "holy grail" continues, despite Terra’s collapse. So what do we do about it?

3
Crypto News Roundup for May 16, 2022

With crypto markets continuing to slump and a look what a recent bill on crypto mining might mean for New York’s economy, CoinDesk’s Markets Daily is back with the latest news roundup.

With crypto markets continuing to slump and a look what a recent bill on crypto mining might mean for New York’s economy, CoinDesk’s Markets Daily is back with the latest news roundup.

4
Kwon Proposes Forking Terra, Nixing UST Stablecoin in ‘Revival Plan 2’

“$UST peg failure is Terra’s DAO hack moment,” the Terraform Labs CEO wrote, “a chance to rise up anew from the ashes.”

“$UST peg failure is Terra’s DAO hack moment,” the Terraform Labs CEO wrote, “a chance to rise up anew from the ashes.”