The US bank "Goldman Sachs" issued the first historical loan backed by the cryptocurrency (Bitcoin); in order to contribute to the institutional adoption of cryptocurrencies.
An official spokesperson from the American “Bloomberg” news agency stated that this loan comes with 24-hour risk management.
He added that the basic volatility of cryptocurrency prices makes this type of loan fall under the category of risk.
The spokesperson noted that Goldman's action reflects its support for the crypto sector, which the bank has been exploring in-depth since December 2021.
The "Coin Telegraph" website stated that the loan backed by (Bitcoin) allows the asset owner to borrow fiat currencies such as the dollar or the Indian rupee after providing (Bitcoin) as collateral.
According to the site, since (Bitcoin) is volatile, its value is exposed to a loss at any time, and in such a case, the borrowing party may be required to add more collateral against the risks of liquidating their assets.
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