Goldman Sachs Eyes uses Bitcoin as collateral
According to a report released Thursday, December 2 by Coindesk, Goldman Sachs is currently undergoing training on how to use bitcoin as collateral for cash loans.
Goldman does not intend to touch the crypto spot markets; instead, the bank, and others like it, plan to rely more on synthetic crypto products like Future.
Banks try to copy tripartite repo agreements, which are methods of borrowing money by selling securities with an agreement to buy them back through a third-party agent, to go this route of not actually touch bitcoin.
According to Coindesk, the opportunity could provide a roadmap for more integrated crypto brokerage services, going hand in hand with Wall Street’s recent about-face on the digital asset class.
Other banks are also following the Silvergate and Signature model, which are both crypto-enabled and announced bitcoin-backed cash loans earlier in 2021.
The United States does not have a strict stance on accepting bitcoin as collateral – the practice saw a bit of a green light under the previous administration, which saw the head of the Office of the Comptroller of the Currency (OCC) Brian Brooks say that bitcoin was the equivalent of cash. , and the banks could keep it safe.
But the OCC could still regulate crypto, as well as other organizations like the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC), depending on what is on offer.
PYMNTS reports that Wall Street executives like Goldman, as well as JP Morgan and others, have leaned more into crypto despite having done so years ago.
See also: Wells Fargo, JPMorgan, Goldman, and more bolster their crypto teams
Executives have done things like adding more to their crypto teams, and banks have added around 1,000 roles in this mode since 2018.
This comes as crypto gradually becomes more accepted with the mainstream and customers and banks embrace the form. As such, the banks have added things like research teams, trading desks, and salary increases to prepare for the future.
During this time, Brazilian Unicorn 2TM Group, the holding company of the Latin American cryptocurrency exchange MercadoBitcoin.com, Announced the Second Completion of a $ 50.3 Million Series B Fundraiser Thursday (December 2).
The tour also ended in July with a $ 200 million investment from SoftBank.
“Today we have reached over 3.2 million clients, which is equivalent to 80% of individual accounts on the Brazilian stock exchange,” said CEO Roberto Dagnoni, noting that 2TM will accelerate its international expansion in Latin America with the new capital, targeting Mexico, Argentina, Chile and Colombia.
Read more: MercadoBitcoin.com Holding Company Secures $ 50 Million Series B Funding