Coinbase took out the first Bitcoin-backed loan from Goldman Sachs

Coinbase took out the first Bitcoin-backed loan from Goldman Sachs

Coinbase has taken out a $750,000 loan from Goldman Sachs to finance its mobile app development. This is the first time that an individual or company in crypto has been accepted by a traditional financial institution. The move means Coinbase will be able to raise more money in the future and continue with their rapid expansion into new markets.

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The “coinbase bitcoin” is a cryptocurrency backed loan from Goldman Sachs. The company has taken out the first Bitcoin-backed loan and it will be used to help finance their merchant services.

Coinbase took out the first Bitcoin-backed loan from Goldman Sachs

The mysterious corporation that took out Wall Street’s first Bitcoin-backed loan from Goldman Sachs has been exposed as Coinbase, America’s biggest crypto exchange.

As of 2021, Goldman Sachs manages $2.5 trillion in assets.

On Tuesday, Bloomberg reported that Coinbase has taken up a Bitcoin-backed loan from Goldman as a strategy to strengthen relations between the crypto and trading worlds, with Coinbase Institutional Head Brett Tejpaul saying:

“Coinbase’s collaboration with Goldman Sachs is a first step toward the acceptance of cryptocurrency as collateral, strengthening the link between the fiat and crypto markets.”

The loan’s cash amount was not specified, but it was secured by a percentage of Coinbase’s overall holdings of 4,487 Bitcoin, which are now worth roughly $170 million. The loan has a 24-hour risk monitoring system, but it also compels Coinbase to fill up its BTC collateral if prices drop too low.

While Bitcoin- and other crypto-backed loans are prevalent in the crypto business, notably on DeFi protocols, they are a rarity in conventional banking, where crypto is considered as excessively dangerous and unpredictable as collateral.

In a May 2 blog post, asset management company Arca said that prospective borrowers are seeking for more such possibilities. “[This loan] indicates institutions’ readiness to use new instruments with old procedures,” it stated.

“It’s much more probable that Goldman is seeing a lot of interest in this sort of deal and is simply testing the waters before going large.”

The Bitcoin-backed loan attracted a lot of discussion on Twitter. “No surprise the SEC is recruiting employees,” Bitcoin podcaster Preston Pysh tweeted about the loan on Wednesday.

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Coinbase took out the first Bitcoin-backed loan from Goldman Sachs

Armstrong’s social media presence

Meanwhile, Coinbase CEO Brian Armstrong has outlined his vision for decentralized social media platforms enabling free speech. On May 2, he told the Milken Institute that Twitter, under new owner Elon Musk, had the chance to “basically embrace adopting a decentralized protocol” that the network could run on.

“I believe that freedom in all forms is worth preserving, and a lot of crypto is about economic liberty.” Another version is the right to free speech.”

Armstrong argues that a decentralized social media network would enable content producers to choose their own moderation standards, and that access to all material would be democratized rather than algorithmically determined. This would prevent some material streams on a platform from being suppressed, allowing consumers to view anything they want.

Coinbase CEO reacts to claims of insider trading with adjustments to token listings

If Twitter does not seize the chance, Armstrong points out that teams are already working on decentralized social media networks, which he calls DeSo, where people may own their own identities.

Since 2019, Twitter’s creator Jack Dorsey has been working on Bluesky, a decentralized social media network that functions independently of Twitter. “Creators have control over connections with their audiences, and developers have the flexibility to create,” Bluesky says.

Given the recent rise in interest in Twitter’s future, we felt now would be a good moment to explain the Bluesky-Twitter connection.

April 25, 2022 — bluesky (@bluesky)

The “who owns the most bitcoin” is a question that many people have been asking. The answer is that it is unknown, but Coinbase took out the first Bitcoin-backed loan from Goldman Sachs.

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  • is coinbase free
  • what is one bitcoin worth

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