Goldman Sachs is in the process to promote cryptocurrency trading desk. The bank is preparing to begin a new cryptocurrency market on Wall Street. It is planning to start small and provide a limited number of derivatives.
Firms supporting Goldman Sachs’s idea
According to a few resources, it will trade Bitcoin futures in a principal, market-making capacity and will create the non-deliverable forward product. The Wall Street firm has begun providing clients futures from (Chicago Board Options Exchange) Cboe Global Markets and (Chicago Mercantile Exchange) CME Group in December.
Goldman Sachs has employed Justin Schmidt as head of digital asset market. It is going to help clients for gaining exposure to cryptocurrencies. Initially, Goldman will sit on the firm’s currency desk.
The problem of purchasing and selling actual Bitcoins is that these Bitcoin can be stolen by hackers. This means any bank looking to promote the transactions to figure out how to guard such assets. This step is required to nod from regulators.
Previously, Goldman Sachs endorsed fintech startup; Circle disclosed to support ZCash to list offerings for its investment app. Basically, Circle Invest is an online payment app and a crypto wallet.
The release of cryptocurrency trading desk is a symbolic step to endorse cryptocurrency. Schmidt in his statement says that the new designation has filled a void in a market. Earlier he had identified during his tenure as an independent crypto trader.
The New York Times stated the bank’s decision to provide all the products earlier Thursday. This business might start in the upcoming weeks. This suggests that Goldman’s is on the track. The people are familiar with bank’s plans as stated last year which firm is aiming to takes its business on the track by the end of June.
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