Bitcoin against dollar: who is in? – If you have been reading Le Journal du Coin for some time, you have probably seen institutions change their behavior towards cryptocurrencies. Indeed, one of the last major events in this regard was the investment bank’s decision Goldman Sachs to accept bitcoins (BTC) against a loan in dollars. However, it would seem that this offer has already found takers, since Coinbase exchanged some of his BTC for Goldman Sachs greenbacks. So, would Coinbase have changed its tune or is it a means of financing its development?
Towards a rapprochement between DeFi and TradFi thanks to Coinbase?
Cryptocurrency-backed stablecoin lending is commonplace in DeFi. Indeed, it was not necessary to wait for Goldman Sachs so that we could exchange our precious cryptos for hard dollars, since protocols Challengesuch asAave (AAVE) have been doing it for several years.
However, this kind of operation is new when it comes to Wall Street, but represents a small revolution in the sector of traditional finance. Indeed, this kind of loan could open the door to other operations of this ilk and to a democratization of cryptocurrencies within traditional finance. Besides, Brett Tejpaulthe head of Coinbase Institutional, expressed this to Bloomberg:
“Coinbase’s work with Goldman is a first step in recognizing crypto as collateral that deepens the bridge between fiat and crypto economies. »
A transaction kept secret
Although Coinbase has affirmed have contracted a loan from Goldman Sachs in exchange for its bitcoins, the exchange did not comment on the amount borrowed or the number of bitcoins deposited as collateral. However, we do know that one of the conditions Goldman Sachs requires when borrowing is Coinbase’s obligation to readjust its quantity of bitcoins left as collateral in the event of a drop in its price.
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A loan that tends to expand to other big names on Wall Street?
Despite the fact that this news has its importance, it would not be not the first time that banks offer this kind of loan.
In effect, Matt Ballensweigthe general manager of Genesis, – a financial institution specializing in digital assets and based in New York – spoke about loans secured by cryptocurrencies. According to him, Genesis has already taken out loans through banks such as Silvergate.
However, the person concerned does not detract from the importance of this news since he considers that this loan will allow Goldman Sachs to “ test the waters before taking a bigger dive [dans les cryptos] ».
The announcement of this loan therefore sounds like good news. Unfortunately, this one may be coming at the wrong time, as bitcoin’s price has just fallen below the $35,000. Let’s hope that this doesn’t hamper the development of the exchange, since it recently launched its own NFT marketplace.
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