Goldman Sachs offered the first loan based on Bitcoin collateral

In its offer, Goldman Sachs approved for the first time the issuance of a loan that has collateral for its assets in Bitcoins, which is a significant step for the American bank that encourages Wall Street to accept cryptocurrencies.

The credit unit approved the payment of cash based on the amount of Bitcoin owned by the loan seeker, a bank spokeswoman said.

The contract was interesting for Goldman Sachs because of its structure and twenty-four-hour risk management, the spokeswoman stated.

Banks on Wall Street are increasing their crypto offerings after their resistance was crushed by the popularity and rising prices of digital currencies.

Goldman, which offered Bitcoin services for the first time in March and has a digital asset management team, is taking this step to signal entry into a new area of business, currently dominated by companies specializing in cryptocurrencies.

Jefferies Financial Group is expanding its services to crypto clients, while the investment fund BlackRock has joined Circle’s $400 million round of stablecoin financing.

Cowen Investment Bank began investing in digital assets in March.

Some of the crypto products and services that Wall Street currently offers include capital management, trading, and investment banking.

Loans to companies that will be secured by cryptocurrencies are the next step, said recently one of the presidents of Galaxy Digital Holdings Damien Vanderbilt.