Goldman Sachs Offers Its First Bitcoin-Backed Loan: Report Today

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Goldman Sachs has offered its first bitcoin-backed loan.

The arrangement, made popular over the past few years in the Bitcoin industry by newer companies, enables a bitcoin holder to obtain fiat money like U.S. dollars by putting up their BTC as collateral to the bank. If the price of bitcoin drops, the user may be required to increase their collateral, risking getting liquidated in case they fail to do so.

The Wall Street giant lent cash collateralized by bitcoin owned by the borrower for the first time, a spokeswoman for the bank told Bloomberg. The deal was interesting to Goldman because of its structure and 24-hour risk management, she told the publication in an email.

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