Wall Street Banks Ponder Crypto-Backed Loans

A number of US banks including Goldman Sachs are considering how to use bitcoin as security for cash loans to institutions.

Banks such as Goldman will not touch cryptocurrency spot markets but still tend to synthetic crypto products such as futures. Emulating tri-party repo type arrangements, banks are searching for ways to follow the same path of not touching bitcoin, like other synthetic products.

Goldman was working on getting approved for lending against collateral. Similarly, some big banks are following the trail blazed by crypto-friendly banks Silvergate and Signature, both of which announced bitcoin-backed cash loans earlier in 2021.