A report revealed that the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. was the entity on the other side of the historic Bitcoin loan given by Goldman.
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Coinbase is an American company that operates a cryptocurrency exchange platform. the popular U.S.-listed cryptocurrency exchange, was the borrower in the recent deal that converted Goldman Sachs to become the first major U.S. bank to make a loan secured by Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. (BTC).
The news media Bloomberg revealed Tuesday that Coinbase received an undisclosed amount of cash cash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term. after placing an equally undisclosed amount of bitcoins as collateral collateral is any asset that a lender accepts as a form of security to ensure that the borrower repays a loan. . The head ofCoinbase InstitucionalBrett Tejpaul, who confirmed the information to the news agency, noted:
El trabajo de Coinbase con Goldman es un primer paso en el reconocimiento de las criptomonedas como garantía que profundiza el puente entre las economías fiduciarias y las criptomonedas.
An agreement between Goldman and Coinbase
The news is the continuation of a historic event for Wall Street and the cryptocurrency industry. A few days ago Goldman Sachs became the first major U.S. bank to issue a cryptocurrency-backed loan .
According to a report in Bloomberg At that time, the bank provided U.S. dollars in exchange for collateral in BTC. A spokesman for Goldman noted that the deal was interesting because of its structure and 24-hour risk management. Reports also suggested that the move could be part of a new credit facility for the 150-year-old bank.
The most recent report reveals the identity of the borrower, although the details of the deal are still unknown. Coinbase a reputable cryptocurrency exchange, said in a 2021 annual report that it held more than USD $566 million in cryptocurrencies, including more than USD $183 million in Bitcoin . También reveló en ese momento la tenencia de USD$ 7,1 mil millones de efectivo.
Crypto-loans attract banks
While loans backed by Bitcoin are not new to the cryptocurrency space, it’s really new for Wall Street . In fact, the agreement of Goldman marca la primera vez que un banco de esa magnitud realiza un acuerdo de este tipo; un hecho que parece reafirmar el interés de Wall Street to bring cryptocurrencies closer to the traditional financial world.
En la industria de criptomonedas, algunas empresas otorgan préstamos garantizados por monedas digitales, e incluso por otros activos, incluyendo tokens non-fungible (NFT). As an example, Babel Finance allows mining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created. companies to Bitcoin put your machines up as loan collateral to borrow cash.
According to Matthew Ballensweig, managing director and co-head of trading and lending at cryptocurrency brokerage firm Genesis these borrowers typically place Bitcoin with a loan-to-value ratio of 40% to 60%. The collateral is held by a qualified custodian, and borrowers receive dollars from the lender at an agreed interest rate, he explained to Bloomberg .
Terms may vary, as well as other prepayment terms, but it is a simple structure to attract institutional lenders to the market.
Genesis is part of the group of companies that has explored the crypto-lending sector, and according to Ballensweig, the firm has already structured similar loans with cryptocurrency-friendly banks, such as Silvergate Bank y Signature Bank . “ We are exploring similar structures with large investment banks that want exposure to the space. “, they say.
Goldman gains gains refer to an increase in value or profit. ground in crypto space
The reports on Goldman come at a time when the financial institution has been leading efforts to expand its product offerings related to the new asset class.
In March, became the first major U.S. bank to complete an over-the-counter (OTC) trade in an instrument linked to Bitcoin, an operation it carried out together with the digital digital technologies are these electronic tools that have the ability to generate, store or even process data. asset finance company Galaxy Digital. The bank has indicated that it is looking for expand its OTC oTC, or ‘Over The Counter’ is trading that happens directly between two parties, with no exchanges or trading platforms involved. offering to Ethereum a decentralized open-source blockchain with smart contracts functionality. .
The Wall Street titan, which has its own cryptocurrency division, has also been exploring more recently the tokenization of real assets, in a first foray into the NFT non-fungible tokens (NFTs) are cryptocurrencies that do not possess the property of fungibility. trend. A few weeks ago, an executive from Goldman had already admitted that the bank is looking to offer a “ full spectrum “of crypto investments, which could even include Bitcoin in cash.
A finales del año pasado, un reportaje de CoinDesk advanced that at least a dozen large U.S. banks are exploring cryptocurrencies as collateral for loans. Goldman Sachs was one of those mentioned in that report.
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Article by Hannah Estefania Perez / DiarioBitcoin
Image edited from Unsplash
