Goldman Sachs has reportedly introduced its first-ever Bitcoin-supported loan, in a significant stride towards institutional cryptocurrency adoption on Wall Street. 

Specifically, a Goldman representative reportedly revealed that the multinational investment bank had carried out the unprecedented deal of lending the cash collateralized by Bitcoin (BTC) owned by the borrower. 

She additionally shared that the deal was specifically interesting due to its structure and 24-hour risk management.

That type of loan reportedly makes it possible for a borrower who holds Bitcoin to borrow fiat currency like the US dollar, via putting their digital asset as front collateral to the bank. 

The volatility that inevitably comes with Bitcoin may amplify the risks these loans pose – should the price of bitcoin plummet too low the borrower may be needed to raise their collateral, otherwise they may forcefully be subjected to liquidation.

In March 2022, Goldman, which has recently formed an in-house virtual asset division, reportedly carried out their unprecedented over-the-counter (OTC) crypto transaction, via an alliance forged with the trading unit of Michael Novogratz’s crypto investment entity Galaxy Digital.

Goldman is accompanied in this adventure into the digital assets sphere, with fellow Wall St banks putting extensive efforts in setting up their presence across the cryptocurrency sphere also.

On April 27th, multi-trillion-dollar asset management entity BlackRock reportedly disclosed details related to the introduction of a blockchain-centric ETF.

Earlier in April this year, the company additionally revealed its participation in a $400M fundraising, along with an alliance formed with Circle, the principal operator of the USDC stablecoin.