US-based crypto exchange Coinbase is the borrower behind Goldman Sachs’s first Bitcoin-backed loan. The crypto exchange reportedly received an undisclosed amount of cash for an equally undisclosed amount of collateralized bitcoin. Coinbase is the Borrower Behind Goldman Sachs’ Bitcoin Loan According to a report from Bloomberg, Wall Street Giant Goldman Sachs offered its first ever lending facility backed by Bitcoin to Coinbase cryptocurrency exchange. The exact amount has not been disclosed, but it was collateralized by a portion of Coinbase’s total holdings of 4,487 Bitcoin, worth $170 million at current prices. The loan features 24-hour risk management, but requires Coinbase to top up its BTC collateral if prices fall too low. “Coinbase’s work with Goldman is a first step in the recognition of crypto as collateral which deepens the bridge between the fiat and crypto economies,” Brett Tejpaul, head of Coinbase Institutional, told Bloomberg. Goldman Sachs Makes the First OTC Bitcoin Trade While Bitcoin-backed and other crypto-backed loans are quite commonplace in the crypto industry, they are still new for Wall Street institutions like Goldman Sachs. Despite offering the TradFi’s industry’s first Bitcoin-Backed loan, the bank, however, dipped its toes in the pool of bitcoin this past March. At that time, the bank initiated a non-deliverable bitcoin option, which is a derivative of bitcoin that pays the borrower in cash. The tr...
