INSUBCONTINENT EXCLUSIVE:
Crypto-backed retail loans are similar to any other secured loanThe rise of cryptocurrency has opened up a number of business opportunities
for investors as well as lenders
While there are some risks associated with the crypto world, the incredible returns attract traders more intimately when compared to other
begun partnering with online exchanges to support crypto payments
In the US too, banks have started looking at ways to use Bitcoin, Ether and other crypto coins as collateral for cash loans to
institutions.Simply put, crypto-backed retail loans are similar to any other secured loan
Borrowers use their digital assets as collateral to secure a loan of representative value
It is done in the same way as a car or a house can be placed as collateral for vehicle or mortgage loans.While major banks are unlikely to
people familiar with the matter, a CoinDesk report named Goldman Sachs, an American multinational investment bank, as leading this effort
repurchase them, involving a third-party agent
These efforts may lead to more integrated crypto prime brokerage services in the future.The move by banks shows that they are gaining
confidence in this new and volatile sector and also that they have an appetite to take bold decisions
