Wednesday, January 19

One of the largest US banks may be exploring Bitcoin lending

With banks and other institutions showing increasing interest in the cryptomarket, we can see more and more products linked to the traditional sector and this new technology. According to anonymous sources cited by CoinDesk, Goldman Sachs and other big banks are considering using Bitcoin as collateral for loans made to institutions.

According to the website and its sources, the banks’ idea is to try to emulate the types of contracts with repurchase agreements between three parties. This type of contract is a way of borrowing funds by selling shares with a repurchase agreement involving a third party or agent.

Through this system, banks are supposedly exploring a way to follow the same path to using Bitcoin as collateral, but still not needing to buy or even directly engage with the cryptocurrency.

“Goldman is working to get approval for collateralized loans and repurchase agreements. And if they had a settlement agent, then they would just be making loans without Bitcoin even entering their books.” said one of CoinDesk’s unnamed sources.

Bitcoin Loan

If this actually happens, it could be a great opportunity for further integration between banking and cryptocurrency brokerage services in the future.

But it is noteworthy that CoinDesk only offered anonymous sources, people who are supposed to be “in the know”.

With this, it is important to make it clear that it is necessary to be very skeptical about this news, large banks such as JPMorgan are indeed interested in offering Bitcoin derivative products to their customers, but the information from these anonymous sources could not be verified.

However, this is not to say that the cryptomarket and banks are not getting closer to the cryptomarket, even in smaller institutions. Recently two banks, the Silvergate and Signature have announced that they will offer cash, but Bitcoin-backed loans to their customers.

Banks and Bitcoin

With US Banks getting permission from the authorities to hold Bitcoin such as cash, it will not be uncommon to see services ranging from escrow to this type of loan supposedly being developed by Goldman Sachs.

The truth is that Bitcoin is for everyone’s use and that, unfortunately for some, also includes the banks, who will always take every opportunity to continue controlling the financial sector and profiting from it.

In the meantime, for retailers, Bitcoin remains the currency that helps investors of all ages begin their quest for financial freedom.