Goldman Sachs granted a loan to Coinbase

Cryptocurrency exchange Coinbase recently revealed that it secured special bitcoin-backed funding from Goldman Sachs.

The objective of this transaction was generated to strengthen the ties between the world of digital assets and traditional finance companies.

Coinbase Institutional head, Brett Tejpaul, noted that the exchange’s work with “Goldman is a first step in recognizing cryptocurrencies as collateral that deepens the bridge between the fiat and crypto economies.”

For now, the total amount of the transaction is not known. However, according to sources, it is presumed that the figure would be valued at approximately 4 bitcoins. That is, about 170 million dollars.

Although loans backed by bitcoin and other cryptocurrencies are common in the crypto industry, especially in decentralized finance (DeFi) protocols, they are rare in traditional finance, where cryptocurrencies are considered too risky and volatile as collateral.

K. Tovar

Source: Cointelegraph