What is Chainlink? Chainlink is an open-source technology for building, accessing, and selling oracle services that enable smart contracts to securely interact with real-world data and services. In the last couple of months, Alchemy Pay has indicated its intention of integrating the Chainlink Price Feeds to power Defi products for fair crypto payments. Over 2 million merchants operating from major platforms like Shopify and Binance are utilizing the service of Alchemy Pay in processing payments globally.Īlchemy pay is available in 65 countries and regions with over 300+ payment gateways. The process takes seconds to be completed. Goldman Sachs lent dollars to Coinbase Global secured against the cryptocurrency exchange’s bitcoin holdings, people familiar with the matter told Breakingviews.Alchemy acts as a middle man between blockchain and retailers, allowing them to receive crypto payment using Alchemy pay systems to be converted to their required fiat currency. ![]() (The author is a Reuters Breakingviews columnist. That would be an even stiffer test of regulators’ resolve. The logical next step would be to make crypto-backed loans directly to hedge funds and specialist investors that try to profit from widespread pricing inefficiencies in the nascent industry. Goldman is lending at a similar rate, according to a person familiar with the deal, but with the added benefit of collateral. Coinbase’s unsecured bonds yield roughly 6% to 7%. Meanwhile, the loan’s lucrative nature could attract rivals like JPMorgan (JPM.N) and Morgan Stanley (MS.N). That said, Coinbase isn’t the riskiest credit. If bitcoin prices slump, as they often do, the custodian may struggle to offload large volumes of crypto-assets. In effect, it allows Goldman to make bitcoin-backed loans without ever touching the digital asset. Goldman’s Coinbase loan uses a similar third-party structure, according to a person familiar with the deal. Silvergate has used a subsidiary of asset manager Fidelity Investments as its custodian. If the borrower defaults, it sells the bitcoin for dollars and sends them to the bank. ![]() A third-party custodian holds the collateral. It goes to a bank, which may lend between 40% and 60% of the crypto-assets’ market value, according to a person familiar with the business. A crypto company, or investor, owns bitcoin and wants to borrow dollars. The trick, already used by niche crypto lenders like Silvergate Capital (SI.N), is to get a third party to hold the collateral. The puzzle for Goldman and others is therefore how to lend against crypto-assets without ever having to take ownership of them, as might happen in the event of a default. A bank with a minimum 8% capital ratio could therefore have to hold a dollar of equity capital for each dollar of crypto exposure. Global standard-setters last year proposed a 1,250% risk weight for volatile cryptocurrencies like bitcoin and ether read more. The cardinal rule for banks tiptoeing into blockchain is to avoid holding risky digital assets directly on their balance sheet read more. Assuming regulators don’t object, the rest of Wall Street will pile in. The structure means Goldman won’t touch crypto-assets. David Solomon’s $100 billion group made a bitcoin-backed loan to $27 billion exchange Coinbase Global (COIN.O), people familiar with the matter told Breakingviews. ![]() LONDON, May 4 (Reuters Breakingviews) - Trust Goldman Sachs (GS.N) to find an angle for investment banks in the cryptocurrency sector.
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