Goldman Sachs to set up cryptocurrency trading desk

Goldman Sachs bank is trying to determine how it will maintain custody of the digital assets in readiness to set up a cryptocurrency trading desk by end of June 218. The intention is to make markets in digital currencies such as Bitcoin.

According to Bloomberg report, which cites three people with knowledge of the strategy. One said the bank is working out security issues and how to hold or custody the assets. One of the people said the bank is assembling a team in New York for the same.

“In response to client interest in digital currencies, we are exploring how best to serve them,” Michael DuVally, a spokesman, said in a statement.

The move will position the bank as the first largest Wall Street bank to make markets in cryptocurrencies. However, it is one of the few mainstream firms clearing a new breed of bitcoin futures offered by CBOE Global Markets Inc. and CME Group Inc. Citigroup Inc. and Bank of America Corp. It is seen as one of most powerful banks with executives often retiring to take powerful positions in the government.

Bitcoin future acceptance created a new hope

The move could also influence other Wall Street institutions to follow suit in helping clients venture in Bitcoin investments. Influence was seen with the launching of Bitcoin futures and more institutions now allow or hoping to allow clients to trade them.

Although the bank hasn’t decided to house the desk. Two people said the desk could operate within the fixed-income, currencies and commodities unit’s systematic trading function, which conducts transactions electronically.

Chief Executive Officer Lloyd Blankfein said in October that the firm was looking at how to deal with Bitcoin. Although he said last month in a Bloomberg interview that the bank would need no Bitcoin strategy. This s because it was just developing and volatile.   

The banks conservatism move where it required some clients set aside funds equal to full value of their Bitcoin futures trade barred some customers from trading. The customers took that business elsewhere.  

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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