Wall Street Banks Explore Bitcoin Backed Loans

Written By Guest User

  • Several tier-one U.S. banks including Goldman Sachs are in discussion regarding how to use bitcoin as collateral for cash loans to companies.

  • Currently banks such as Goldman Sachs do not purchase or hold bitcoin but will participate in synthetic crypto products such as Bitcoin futures.

  • Banks currently use tri-party repo arrangements as a way to borrow funds by selling securities in agreement to repurchase them with several other products such as oil and other commodities and are looking to extend this capability to the Bitcoin market.

  • This news comes after crypto-friendly banks such as Silvergate and Signature announced bitcoin backed loans for crypto mining institutions such as Marathon and Riot.

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