Coinbase became a partner of Goldman Sachs in issuing Bitcoin-backed loans
The exchange received the first loan secured by cryptocurrency as part of the cooperation
04.05.2022 - 08:05
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What’s new? US cryptocurrency exchange Coinbase has entered into a partnership with the investment bank Goldman Sachs as part of a project to issue loans secured by bitcoins. This is reported by Bloomberg.
What else is known about the deal? According to published data, Coinbase received some amount of cash that is backed by cryptocurrency. Coinbase Institutional Head Brett Tejpaul has confirmed the deal and stressed that the partnership between the companies is the first step towards recognizing cryptocurrencies as collateral. In his view, this will strengthen the bridge between the fiat and crypto economies.
The specific terms of the deal are not disclosed by the parties, but according to Matthew Ballensweig, managing director at crypto exchange Genesis, such loans typically involve a ratio of the amount of money received to the value of bitcoins of 40-60%.
What events happened before? At the end of April 2022, Goldman Sachs issued its first loan secured by bitcoins. BTC held in the borrower’s wallet were used as collateral.
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