Yesterday Bloomberg reported that Goldman Sachs extended its first cash loan where the security provided was in the form of Bitcoin. A spokesperson said the novelty was the structure and 24-hour risk management.
This follows Goldman participating in its first over the counter (OTC) Bitcoin option transaction last month.
Crypto-backed loans could be rather attractive to banks because of the high interest rate given the risks. The rates vary from 1% to 9% for retail users, depending on how much collateral is provided.
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