In an interview with Bloomberg, Goldman Sachs Chief Operations Officer David Solomon said that the US-based investment bank is already exploring crypto trading beyond the futures which the bank already handles. He explained:
We are clearing some futures around Bitcoin, talking about doing some other activities there, but it’s going very cautiously.
The COO, who is also President of the New York-based firm, said that the decision is informed by the numerous requests by its clients to explore crypto trading beyond futures. He said:
we’re listening to our clients and trying to help our clients as they’re exploring those things too.
Solomon said that it was time for one of the largest investment banks in the US to adopt new operational measures. He explained that any business must adapt to the current business environment, which includes adopting cryptocurrencies.
Goldman Sachs Leading Others in Adopting Crypto
The majority of the leading financial institutions and banks have struggled with what to do with the booming crypto industry, which is worth about $300 billion. The regulatory uncertainties in the crypto space complicate matters for the banking industry, as they are not sure how the authorities will react to the largely unregulated industry as yet.
While most bigger banks are treating crypto with caution, Goldman Sachs is among the leading banks supporting the crypto space. The bank is in the process of establishing a trading desk that will deal crypto and its products. The bank aims to have the business running by the end of this month; but people with knowledge of the strategy told Bloomberg that it is expected to be running by December.
The move is set to make Goldman Sachs the first major Wall Street bank to open a crypto trading desk; however it will only offer a limited numbers of derivatives at first.
The creation of the trading platform, first reported by The New York Times, came after senior figures at Goldman Sachs concluded that Bitcoin was not a fraud or simply a speculative bubble.
To ensure smooth operations in the new frontier, Goldman Sachs hired Justin Schmidt, a former crypto trader and industry expert, as the head of digital assets markets, in order to help the bank explore the possibility of creating a crypto trading desk.
The firm is also heavily linked with Circle, which was started in 2013 and features a blockchain-based app, allowing people to transfer money with no charges. The startup also offers its clients a medium for investing in cryptos, with over-the-counter crypto trading for institutional investors.
Recently, Circle announced its plans to launch a new crypto that will be pegged to the US dollar – referred to as the USD Coin. The aim of the new crypto is to enhance transactions made using dollars through blockchain technology, and reduce the volatility that has been witnessed in the crypto space.
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