Business Insider: Goldman Sachs Drops Plans to Open Crypto Trading Desk

Published at: Sept. 5, 2018

Goldman Sachs Group Inc. is halting its plans to open a cryptocurrency trading desk, Business Insider reports September 5, citing sources familiar with the matter.

The bank’s plans to create a crypto-focused unit by the end of June 2018 were originally reported by Bloomberg, with sources claiming that Goldman Sachs aims to become "the first large Wall Street firm to make markets in cryptocurrencies."

Now, Business Insider reports citing unnamed sources that the bank has lowered the priority of this project, as the regulatory environment in the crypto industry remains unclear. It might take many steps before a regulated bank could trade digital assets, most of them outside Goldman Sachs' control, sources reportedly reveal.

“At this point, we have not reached a conclusion on the scope of our digital asset offering,” Goldman Sachs spokesperson Michael DuVally told Reuters.

However, the bank is not going to fully reject crypto trading. As Business Insider's sources claimed, Goldman Sachs is about to focus on a custody product for crypto, which will allow it to hold cryptocurrency on behalf of large clients and track its price.

Back in May, Goldman Sachs’ executive Rana Yared stated that the bank "had concluded [B]itcoin is not a fraud" as the company officially revealed its plans to buy and sell cryptocurrencies.

Nevertheless, the company’s top officials remained sceptical about digital assets. Goldman Sachs' CEO Lloyd Blankfein once said Bitcoin trading was not for him, but clarified that it he’s open to considering it, if the cryptocurrency becomes “more established.”

Tags
Related Posts
Circle plans to become a full-reserve national digital currency bank
Goldman Sachs-backed digital payment company Circle has officially disclosed plans to become a full-reserve national digital currency bank in the United States. Announcing the news on Monday, Circle co-founder and CEO Jeremy Allaire noted that Circle is willing to operate under the supervision and risk management requirements of the Federal Reserve, the U.S. Treasury, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation. “We believe that full-reserve banking, built on digital currency technology, can lead to not just a radically more efficient, but also a safer, more resilient financial system,” Allaire stated. The CEO added …
Bitcoin / Aug. 9, 2021
CME Group CEO Terry Duffy: Government Involvement Key to Crypto’s Success
Terry Duffy, CEO of leading derivative market CME Group, has said that until governments start to accept cryptocurrencies, it is very difficult for major commercial banks to get involved in the market. Duffy made his comments during an interview with Bloomberg published on Feb. 14. When asked if Bitcoin’s (BTC) price has hit its bottom, Duffy said that he is not sure. The interviewer also brought attention to the JPM Coin, the cryptocurrency soon to be launched by United States banking giant JPMorgan to increase settlement efficiency, as recently reported by Cointelegraph. Duffy outlined a change in JPMorgan Chase’s attitude …
Bitcoin / Feb. 15, 2019
Galaxy Digital’s Mike Novogratz: Cryptocurrency Markets Will ‘Flip Next Year’
Mike Novogratz, ex-Goldman Sachs partner and founder of Galaxy Digital, has said that he expects cryptocurrency to “flip next year” in an interview published by Financial Times (FT) Nov. 23. During the interview, Novogratz said that “this year has been challenging” for Galaxy Digital – a company that he hopes will become “the Goldman Sachs of crypto” – adding that “it sucks to build a business in a bear market.” According to FT, Novogratz predicted that financial institutions will transition from “investing in cryptocurrency funds to investing in cryptocurrencies proper in the first quarter of next year.” As FT reports, …
Bitcoin / Nov. 25, 2018
ConsenSys’ Ajit Tripathi: ‘Rebellious Teenager’ Crypto Is Maturing
This interview has been edited and condensed. Cointelegraph had the opportunity to speak to ConsenSys’ Ajit Tripathi at BlockShow Europe 2018 about his experience leaving Wall Street for the crypto world, what new ConsenSys projects he’s most excited about, and why crypto regulation changes from country to country. Molly Jane: Could you tell us a little bit more about what ConsenSys does and what your role is there? Ajit Tripathi: ConsenSys is a venture production studio based in Brooklyn, and now we have offices in London, in about 30 countries, including London, Paris, South Africa, Australia, and Singapore — we're …
Blockchain / June 25, 2018
Goldman Sachs Exploring Crypto Derivatives, Says COO
Leading U.S. investment banking group Goldman Sachs is exploring cryptocurrency trading derivatives, Goldman Sachs Chief Operating Officer (COO) said in an interview with Bloomberg June 20. COO David Solomon stated that the company is already assisting clients in publicly-traded derivatives such as Bitcoin (BTC) futures, and that the company is “very cautiously” considering “some other activities” in the field. According to Solomon, the purpose of the company is to “evolve its business and adapt to the environment” with respect to cryptocurrencies. “We are clearing some futures around Bitcoin, talking about doing some other activities there, but it’s going very cautiously. …
Bitcoin / June 20, 2018