According to sources familiar with the plans, Goldman Sachs and other major banks are exploring the possibility of using bitcoin as collateral for cash loans to other institutions
Banks like Goldman will not work with the spot cryptocurrency market, but prefer synthetic crypto products, such as futures. By emulating trilateral repo-type agreements, banks are exploring ways to follow a similar path without directly working with bitcoin. According to sources, this opportunity lays the foundation for more integrated cryptocurrency brokerage services in the future.
“Goldman has been working on obtaining permission for collateral lending and three-way repo. And if they had a liquidation agent, they would simply be engaged in lending on collateral, while BTC would not get to their balance sheet,” the source said.
Goldman Sachs declined to comment. Some major banks intend to follow the example of Silvergate and Signature, which announced the possibility of loans in cash backed by BTC.
“We have been in dialogue with several large banks. Some of them plan to start working with the possibility of collateral in bitcoin in 3-6 months, some – a little later. It is noteworthy that some of these banks will use their own balance sheet to issue loans,” another source said.
Coinbase and Fidelity Digital Assets were named as potential storage services with which banks were negotiating.
It is reported that, in addition to large banks, a number of small lenders are also considering options for using cryptocurrencies as collateral.
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