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Report: Goldman Sachs and other Wall Street banks are exploring Bitcoin-backed loans

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Goldman Sachs and several other Wall Street banks are exploring ways to make institutional cash loans with bitcoin as collateral, CoinDesk reported. The report cited three people familiar with the plans of a group of U.S. tier-one banking institutions interested in the activity.

However, most banks will not hold “physical” bitcoin to make loans, but instead use synthetic products such as futures contracts.

The idea is to emulate representative of the tripartite the report said. It is a kind repurchase contract in which a third-party agent facilitates a transaction between a buyer and a seller by holding collateral and securing the delivery of cash and related assets to each party according to the terms of the agreement .

https://bitcoinmagazine.com/business/report-goldman-sachs-and-other-wall-street-banks-are-exploring-bitcoin-backed-loans Report: Goldman Sachs and other Wall Street banks are exploring Bitcoin-backed loans

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