Coinbase set an example to push the other companies to take loans with the use of Bitcoin holdings.
Coinbase is a leading crypto exchange in the crypto industry. Exchange provides crypto services globally, where crypto trade activities are legal. Due to compliance-based services, the exchange is standing at 2nd rank, in terms of high trade volume. This exchange is also a Nasdaq-listed public crypto exchange, which shows its trust among the crypto investors to go with Coinbase.
On 3 May, Bloomberg reported that Coinbase exchange became the first-ever company to take a loan from Goldman Sachs, with the use of Bitcoin as collateral.
Brett Tejpaul, head of Coinbase exchange, stated on this matter and noted that it is going to be a way to show better relation between Crypto and the traditional financial system.
“Coinbase’s work with Goldman is a first step in the recognition of crypto as collateral which deepens the bridge between the fiat and crypto economies.”
The details of the amount of loan that Coinbase exchange secured from Goldman Sachs, was not disclosed in the public domain. But exchange took the loan on the use of its 4,487 Bitcoin holdings, which are worth around $170 million today.
However it is a very common thing for the crypto investors in the crypto market to take loans on behalf of the crypto assets holdings but in traditional finance, it is not common because of the high volatility in the price of crypto assets.
Meanwhile, Brian Armstrong, CEO of Coinbase exchange, shared his suggestion for the Tesla CEO for the Twitter platform, during a speech at Milken Institute. Brian suggested Elon use the decentralized protocol to use in the Twitter platform to make the initiative of free speech vision more successful.
“I think freedom in all forms is worth defending and crypto, a lot of it, is about economic freedom. Freedom of speech is another version.”