Coinbase Becomes Goldman Sachs' First Client for Bitcoin-backed Loan
Main page News, US, Banking, Cryptocurrency Exchanges

Cryptocurrency exchange Coinbase turned out to be the first client of Goldman Sachs to take a bitcoin-backed loan, Bloomberg reports, citing sources close to the matter.

Subscribe to our Telegram channel to get daily short digests about events that shape the crypto world

Although further details about the loan remain unclear, Matthew Ballensweig, Managing Director and Co-Head of Trading and Lending at Genesis, told the media that borrowers usually post bitcoin (EXANTE: Bitcoin) at loan-to-value in the 40% to 60% range.

"Tenors can vary as well as other prepayment terms, but it's a simple structure to bring institutional lenders into the market."

Goldman Sachs CEO Held Private Meeting with FTX Over Potential IPO: Report

Ballensweig added that with the deal, Goldman might be "testing the waters before making a bigger splash" as the financial institution is seeing a lot of demand for this type of transaction.

As iHodl reported, other crypto-focused banks, including Signature and Silvergate, are also offering similar bitcoin-backed loans. Earlier this year, Goldman Sachs started offering bitcoin and ether (ETH) futures and options trading to its clients. The bank also launched non-deliverable fiat-based BTC forwards.

Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange

Read also:
Please describe the error