Connect with us


Goldman Sachs Plans to Relaunch its Cryptocurrency Desk



Goldman Sachs Plans to Relaunch its Cryptocurrency Desk

As the industry moves faster, Goldman Sachs plans to reopen its cryptocurrency desk.

According to Reuters, the US multinational investment bank Goldman Sachs (Goldman Sachs) will provide Bitcoin futures and non-deliverable forwards futures contracts on behalf of its customers starting next week. Sources state that the move is part of the bank’s efforts to capitalize on the rapidly growing crypto space that is gradually becoming the preferred investment for institutional participants.

It’s worth noting that as part of its commitment to fully getting into the industry, the bank is also considering developing a Bitcoin Exchange-Traded Fund (ETF) as soon as possible.

On this basis, the source pointed out that Goldman Sachs “made a request for information to investigate information about the custody of digital assets.”

Goldman Sachs First Trial for Cryptocurrency Desk

In late 2017, Goldman Sachs became the first largest Wall Street company to consider offering cryptocurrency-related products as the bank was planning to open a cryptocurrency service desk. At the time, Wall Street financial institutions were studying how to deal with business security challenges and how to hold assets.

The issuance plan was slated to get underway in the second half of 2018, when it was reported in September of that year that the bank had decided not to provide cryptocurrency-related assets. The source said the bank abandoned its crypto plan due to regulatory issues related to the industry. The issue of regulatory uncertainty has been a major obstacle preventing several institutional participants from getting involved in cryptocurrency.

Interestingly, there have recently been clearer regulations to attract institutional investors like Microstrategy and Tesla. Compared to 2018, the entry of these large companies has given other institutional investors the green light to keep cryptocurrencies safe.

Because of this, Goldman Sachs may have drawn up a plan for a serious restart of its cryptocurrency trading platform.

Sudden Change of Plans

However, Goldman Sachs’ second attempt at opening a cryptocurrency trading desk comes less than a year after the bank said on a conference call to its clients that Bitcoin and Cryptocurrencies are not asset classes.

According to reports, part of the reason for the conference call was to discourage its clients from adding bitcoin and cryptocurrencies to their investment portfolios.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

Copyright © 2020 LightBlocks