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Report: Goldman Sachs is Going All-In on Cryptocurrency

By NexChange
FinTech

While bitcoin has had its share of detractors within the hallowed halls of Wall Street – including Jamie “It’s a fraud” Dimon and Ray “It’s a bubble” Dalio – Goldman Sachs has perhaps been the most high-profile investment bank that has never shunned the cryptocurrency.

After the Wall Street Journal reported a couple of months ago that it was weighing a new trading operation dedicated to trading bitcoin and other cryptocurrencies, Bloomberg reported on Thursday that Goldman is indeed going through with its plan to set up a desk specifically to make markets in the cryptocurrency space. Citing “people with knowledge of the strategy,” Bloomberg is reporting that the bank plans to get its crypto-trading operation up and running by the end of June – with another person saying that Goldman is “still trying to work out security issues as well as how it would hold, or custody, the assets.”

The move positions Goldman Sachs to become the first large Wall Street firm to make markets in cryptocurrencies, whose wild price swings and surging values have captured the public’s imagination but given pause to established institutions. Already, the bank is among just a 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., for example, have been taking a wait-and-see approach.

Sources also tell Bloomberg that Goldman is currently putting together a team in New York and debating where to put its crypto operations. One possibility is to place it “within the fixed-income, currencies and commodities unit’s systematic trading function,” according to Bloomberg.

Jeff Currie, global head of commodities research for Goldman Sachs Group Inc. said in an interview with Bloomberg Television in November that a lot of the negative takes on bitcoin are essentially due to a fundamental misunderstanding of the cryptocurrency.

Photo: World Economic Forum

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