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Global investment bank Goldman Sachs has reportedly offered its first-ever loan backed by cryptocurrency. The cash loan was collateralized by bitcoin owned by the borrower. A spokesperson for Goldman Sachs explained that the deal is interesting to the investment bank due to its structure and 24-hour risk management.<\/strong><\/p>\n Global investment bank Goldman Sachs has offered its first-ever cash loan backed by bitcoin (BTC<\/a>), Bloomberg reported Thursday.<\/p>\n A spokeswoman for the bank explained to the publication that the secured lending facility lent cash collateralized by bitcoin that is owned by the borrower. She further noted that the deal was interesting to Goldman Sachs because of its structure and 24-hour risk management.<\/p>\n Goldman Sachs has been increasingly friendly to cryptocurrency. In March, the investment bank featured<\/a> cryptocurrencies, the metaverse, and digitalization on its homepage. The firm sees the metaverse as an $8 trillion opportunity<\/a>.<\/p>\n The global investment bank brought back its bitcoin trading desk<\/a> in March last year. In May, it formally established<\/a> a cryptocurrency trading team and launched bitcoin derivatives trading<\/a>. In June, Goldman Sachs expanded its cryptocurrency trading desk to include ether (ETH) futures and options<\/a>. In March this year, the bank executed <\/a>its first OTC crypto transaction.<\/p>\n Goldman Sachs said in January that the price of bitcoin could reach $100K<\/a>. \u201cBitcoin may have applications beyond simply a \u2018store of value,’\u201d the bank\u2019s analyst explained, adding that \u201cdigital asset markets are much bigger than bitcoin.\u201d<\/p>\n Bitcoin-backed loans are becoming more popular. The Nasdaq-listed software company Microstrategy recently obtained<\/a> a $205 million loan from Silvergate Bank backed by the company\u2019s bitcoin holdings. Microstrategy used the loan to purchase additional bitcoin for its corporate treasury.<\/p>\nGoldman Sachs and Bitcoin-Backed Loans<\/h2>\n