It is reported that Goldman Sachs’ will be setting up a cryptocurrency trading desk as it actively makes a foray into the cryptocurrency trading market. The Bank plans to get its crypto-trading desk up and running by mid-2018. The report further indicates that the necessary steps are being taken to ensure that security matters have been addressed as well as issues concerning how the bank will hold or custody the digital assets.
If this happens, Goldman Sachs’ will position itself as the first of large Wall Street firms to actively participate in the cryptocurrency market. The bank is currently one of the few notable financial institutions clearing bitcoin futures options being offered by Cboe Global Markets Inc. and CME Group Inc. whiles other financial institutions like the Bank of America Corp. have been taking the wait-and-see approach.
Sources say that the bank is currently assembling a team in New York that will spearhead its crypto-trading strategy. It is speculated that the desk will be made to operate within the banks’ fixed income, currencies and commodities trading unit’s systematic trading function.
Michael DuVally a spokesperson in a statement said that “in response to client interest in digital currencies, we are exploring how best to serve them.”
The bank’s Chief Executive Lloyd Blankfein has been pretty much guarded about cryptocurrencies in public. In a tweet in October, he made it known that Goldman Sachs’ was looking at ways to deal with bitcoin. In an interview with Bloomberg TV in November, he indicated that the bank did not yet need a bitcoin strategy since digital currencies are still new and very volatile.
The bank however started clearing bitcoin futures earlier in December but advised some clients to set aside funds which are equivalent to the value of their trade. This pretty much shows how conservative the bank still is about digital currencies despite its progressive moves in the space thus far.