The crypto market hasn’t been at its best since this year.
Volatility is higher than ever. After months of falling coin prices, starting with Bitcoin, the king of cryptography, a slight rebound continued.
However, since then, the price of digital currencies has been zigzag and cannot exceed certain symbolic thresholds. Bitcoin, for example, is struggling to exceed $ 50,000 despite the news of widespread acceptance.
For example, more and more major crypto investors have created their meaculpa.Next, I saw the following traditional financial billionaires and celebrities: Ken Griffin, Ray dalio, Bill Gross Recognize that Bitcoin has found its place as an asset we can invest in.
And in terms of regulation, President Joe Biden signature A presidential directive urging federal agencies not to curb innovation. How to demand stricter regulations in the field of cryptocurrencies. Cryptographic evangelists like Sam Bankman-Fried, CEO of crypto exchange FTX.com, which is a sign that the wind is blowing in that direction, wants the Biden administration to issue regulations in this sector as soon as possible. increase.
First Bitcoin Assistance Loan
Indeed, it still remains to persuade the Securities and Exchange Commission to approve the Spot Bitcoin Exchange Traded Fund EFT.Basically, the agency Continue to oppose spot ETFs based on actual Bitcoin holdings.. But overall, the industry has never been so ideal for the general public, as well as for regulatory agencies and traditional finance.
So it’s no surprise that Goldman Sachs, a leading investment bank, has taken a new step in its crypto-related services. The establishment has just created the first Bitcoin-backed lending facility.
Basically, Goldman Sachs has allowed borrowing clients to use Bitcoin (BTC) as collateral to obtain cash loans through this transaction.
“We recently expanded a secure lending facility to lend Fiat backed by BTC. BTC is owned by the borrower,” a Goldman Sachs spokeswoman said in an email statement. “What was interesting to us was the structure and 24/7 risk management.”
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Goldman Sachs did not provide additional details, but Legacy Banks therefore adds services that were previously only offered by crypto companies. Bloomberg first reported on the loan facility.
This transaction shows how mainstream finance generally adopts Bitcoin and crypto. Most Wall Street institutions are increasingly offering crypto-related services. This is the case for Jefferies Financial and Cowen Inc., which currently has a unit dedicated to digital assets.
Goldman Sachs extends its crypto services.
This isn’t the first time Goldman Sachs has dared to do anything related to cryptocurrencies, especially Bitcoin.
March.Bank Said You have just executed the first over-the-counter (OTC) crypto options transaction. According to Goldman Sachs, the company traded Bitcoin-linked commodities called Undeliverable Bitcoin Options (NDOs), a derivative associated with Bitcoin prices.
Options are used by crypto investors to hedge risks and raise yields, and over-the-counter transactions are larger transactions that are negotiated personally.
The transactions carried out by Goldman Sachs were facilitated by Galaxy Digital, a company investing in cryptocurrencies, especially Bitcoin.
“As Goldman Sachs continues to expand its cryptocurrency offerings, this is the first OTC cryptocurrency transaction by a major US bank, demonstrating the continued maturity and adoption of digital assets by banks.” Galaxy said at the time.
Galaxy, a global provider of blockchain and crypto financial services for financial institutions, was founded and operated by Bitcoin evangelist Mike Novogratz of Billionaire. Novogratz is also a former Goldman Sachs banker.
These transactions suggest that Goldman Sachs believes that cryptocurrencies are stable enough to be guaranteed by large financial institutions.