The largest marketplace for cryptocurrencies used in the US Bitcoin (BTC) as collateral to obtain funding from a leading Wall Street bank.
According to a new Bloomberg report, Coinbase provided an undisclosed amount of BTC while receiving a loan from Goldman Sachs, a milestone in bringing cryptocurrency mainstream among traditional institutions.
Coinbase Institutional Head Brett Tejpaul says of the deal with the financial services titan:
“Coinbase’s collaboration with Goldman is a first step in recognizing crypto as collateral, deepening the bridge between the fiat and crypto economies.”
While the Bloomberg report doesn’t address specific dollar or bitcoin amounts within the Goldman Sachs loan, it does reveal that Coinbase’s total crypto-asset inventory surpassed $566 million at the end of 2021. Bitcoin accounts for over $183 million in total. Coinbase also had “$7.1 billion in cash and cash equivalents” at the end of the year.
Last week, it was revealed that Goldman Sachs was planning its first-ever lending to a borrower fully backed by Bitcoin.
A crypto-backed loan comes with the caveat that Goldman Sachs could force the borrower to add more collateral or liquidate the existing secured BTC if the price of Bitcoin falls below a certain level.
A month ago, Goldman Sachs also announced that it plans to offer a “full spectrum” of digital asset-related services to high net worth clients with at least $25 million in investments.
A recent study by crypto exchange platform Bitstamp, which surveyed over 5,500 institutional investors worldwide, found that 88% believe crypto assets will eventually overtake traditional money.
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Source: Crypto News Deutsch