Will big banks use Bitcoin as collateral for loans? – CVBJ
Finding themselves in a market that is intertwined with the crypto world, the big banks would have the opportunity to profit from digital assets. At least several banking institutions are said to be looking to develop some type of loan backed by guarantees anchored to BTC.
The layout of the big banks
It is possible that in the future funding transactions backed by cryptocurrencies will be generated. Some banking companies are said to be behind a process of including the crypto world in lending operations.
On the one hand, the big banks would develop a lending system linked to BTC, and on the other hand, they would maintain the traditional flow of fiat currencies. They would do so in order to have protected guarantees with the digital asset, without it circulating directly between financial entities.
Among the companies involved, Goldman Sachs is one of those that resonates the most in the opinions of different personalities. The market estimates a not-so-long period of time during which the said bank, along with others well-known, will formalize the new initiative.
These loans would be made in a tripartite pension type framework, taking into account the repurchase of the loaned asset.
In this sense, before the consolidation of a programmed buy and sell position between the parties, the banks’ disposal will be protected by a guarantee in BTC. In addition to this, there could be a scenario where third party agents are used to ensure the exchange, with capital outside the main balance sheet of these entities.
A future still uncertain
Despite the fact that the market foresees a possible new relationship of the big banks (at least 6 of them) with the crypto world, the exact moment of its application has not yet been defined. This comes in an environment where government regulations targeting Bitcoin are not fully informed.
It is not yet certain whether the idea is actually used in new financial operations, the banks not daring to provide details on this subject. It appears that for now, data is known that will completely dispel investor doubts.
Meanwhile, regulators of the economy are somehow trying to create a regulation where BTC can approach mainstream finance. Given this crypto’s relationship with banks, the SEC, CFTC, and the Office of the Currency Accountant (OCC) would have posted positive positions.
However, the regulations coming from the aforementioned entities navigate in an area which remains confused. If the new initiative could be left open, the regulatory framework would be adapted in different ways, depending on the proposals made by each of the big banks.
A cryptocurrency-backed loan would take months or even years to arrive, due to the limited openness of these banks to doubts.