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Banking Giants Like Goldman Sachs Are Exploring Accepting Bitcoin As Collateral For Loans
Summary: According to Coindesk, three people familiar with the matter stated that Goldman Sachs and other Wall Street banks are exploring accepting BTC as collateral for loans. These banking giants tend to use synthetic crypto products such as futures instead of direct contact with spot ones, using a model similar to the Tri-party repo, which involves borrowing ...
According to Coindesk, three people familiar with the matter stated that Goldman Sachs and other Wall Street banks are exploring accepting BTC as collateral for loans.
These banking giants tend to use synthetic crypto products such as futures instead of direct contact with spot ones, using a model similar to the Tri-party repo, which involves borrowing funds by selling securities and agreeing to repurchase, involving third-party agents.
According to a source interviewed by CoinDesk, Goldman Sachs is working to obtain approvals for mortgage loans and tripartite repurchase loans, which will lay the foundation for the integration of future cryptocurrency prime brokerage services. “We’ve probably spoken to half a dozen big banks about [Bitcoin-backed loans],” said the source, “what’s interesting is some of these banks will use their own balance sheet to make the loan. Others will syndicate this out."
By Mary Liu
Tags: Bank,Bitcoin,Goldman Sachs,Wall Street
Link: Banking Giants Like Goldman Sachs Are Exploring Accepting Bitcoin As Collateral For Loans [Copy]
