Goldman Sachs, a multinational corporation, announced that it has started the first lending operations of fiat currency with a guarantee of Bitcoin for the first time in history, in a major step towards the adoption of digital currencies in traditional banking transactions.

A Goldman Sachs spokeswoman told Bloomberg

“Multinational Investment Bank Lends Money with a Guarantee that Borrower Holds Bitcoin for the First Time in the Bank’s History.”

This loan allows a Bitcoin holder to borrow a fiat currency such as the US dollar, by offering Bitcoin as collateral to the bank.

According to “Crypto News”, the intraday price change of Bitcoin may make such transactions very risky.

Read:China’s messaging app giant WeChat supports digital yuan payments

Goldman Bank is not the only bank that is experimenting with these experiments to link digital and encrypted transactions, as several Wall Street banking institutions are intensifying their movements towards the digital currency market.

While loans backed by cryptocurrencies were a staple in the world of decentralized finance (DeFi), a loan secured by cryptocurrency collateral has now become an alternative way to finance traditional banking operations.

Read:The Ripple community is waiting for the Ripple case to be settled with the SEC… Will that happen soon?

Read also:

The Bahamas intends to accept tax payments using cryptocurrency

The start of the third phase of the sale of Sheba lands in Metaverse..Payment in Sheba currency soon