Cryptocurrency exchange Coinbase has managed to pull one of the Wall Street giants into the branch. “Coinbase’s collaboration with Goldman Sachs represents the first step in the use of cryptocurrencies as collateral, thereby strengthening the bridge between the prestigious currency and crypto economies,” Brett Tejpaul, head of the institutional investors department at Coinbase, said in an emailed statement. he used his words.
Coinbase did not provide any additional information other than credit details. Speaking last week, a Goldman Sachs spokesperson said that the Bitcoin-collateralized lending was provided by a previously undisclosed institution.
BTC-backed loans are not a new development for the cryptocurrency division, but it is a promising step for Wall Street giants to step into the division. Cryptocurrency-based organizations such as Babel Finance allow BTC mining companies to borrow cash, even using mining devices as collateral.
At the end of last year, Coinbase had a total of $566 million in cryptocurrencies, of which $183 million was BTC. At the same time, the company announced that it had $7.1 billion in cash and cash equivalents.
BITCOIN COMMENT FROM GOLDMAN SACHS ANALYSTS: NOT SUFFICIENT
Banking giant Goldman Sachs believes that the adoption of BTC by more individual investors will not be enough to boost the price of Bitcoin.
Goldman strategists Zach Pandl and Isabella Rosenberg wrote in a note to investors last month that while Bitcoin is gaining traction for mainstream investors, its ties to other macro assets are also on the rise.
Strong liquidations in the Bitcoin and cryptocurrency market have mostly followed the liquidations in the equity market. Bitcoin’s correlation with the S&P 500 has reached its highest level ever.