Goldman Sachs makes Wall Street history with first Bitcoin-backed loan

What

US Investment Bank Goldman Sachs has made the first Bitcoin-backed loan to crypto exchange Coinbase

Why

The first-of-its-kind loan is expected to deepen ties between crypto and traditional finance

What next

The loan’s lucrative nature could pave the way for other banks like JPMorgan and Morgan Stanley to follow

The Story

US investment bank Goldman Sachs has made Wall Street history as the first to make a collateralised Bitcoin loan to a cryptocurrency exchange.

The dollar value of the loan has not been disclosed, however, it is expected that the move will help deepen ties between crypto and traditional finance where crypto is traditionally thought to be too volatile as collateral.

With Coinbase’s unsecured bonds yielding around 6% to 7%, other similarly sized banks like JPMorgan and Morgan Stanley could follow Goldman Sachs’ examples.

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