Goldman Sachs, Other Wall Street Banks Exploring Bitcoin-Backed Loans: Sources

Goldman Sachs, Other Wall Street Banks Exploring Bitcoin-Backed Loans: Sources
Goldman Sachs is among a handful of tier-one U.S. banks figuring out how to use bitcoin as collateral for cash loans to institutions, according to three people familiar with the plans.Banks such as Goldman will not touch cryptocurrency spot markets but lean towards synthetic crypto products such as futures. Emulating tri-party repo type arrangements (a way of borrowing funds by selling securities with an agreement to repurchase them, involving a third-party agent), banks are exploring ways to follow the same path of not touching bitcoin, like other synthetic products.It’s an opportunity that lays the groundwork for more integrated crypto prime…