Economy

Goldman Sachs Reportedly Delaying Creation Of Crypto Trading Desk

Goldman Sachs Reportedly Delaying Creation Of Crypto Trading Desk

On his part, Chavez said that Goldman wasn't scaling back its roadmap - which he said was never actually set in stone - and that the bank specifically plans to create a bitcoin derivatives product that functions similarly to the cash-settled cryptocurrency futures contracts now available on Chicago-based exchanges CME and CBOE.

"The bank was looking for some regulatory changes that have yet to materialize and would have protected banks like Goldman from some of the risks unique to trading cryptocurrencies", an unnamed source told the site.

But since then, its value has steadily dropped, and following a number of crashes, the most popular cryptocurrency is now worth less than $7,000. The rest of the top five cryptocurrencies by market cap toppled by more than 12 percent.

Some are claiming that the news is likely to keep bitcoin and cryptocurrency down for good - that this was the highlight of digital money's journey towards legitimacy, and the barricades will be too much to handle without Goldman Sachs' help.

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And with Goldman's refusal to continue with the trading desk, a lot of hopes and dreams are again being dashed to the ground. The availability of crypto custody services from reputable firms has been referred to as a key requirement for bringing institutional investors into the crypto market.

Goldman has been making a clear and steady effort to capitalize on crypto markets. Also, Goldman Sachs is engaged in developing Bitcoin derivatives to satisfy the clients' needs.

Its forays into the space date back to 2015, when Goldman was part of a $50 million funding round with digital payment platform Circle.

The bank makes markets in futures and other contacts that rise and fall based on bitcoin's price but don't require actually owning cryptocurrency.

But as for getting into the trading of actual crypto assets itself, Goldman Sachs may still have a way to go, as its recent backpedaling demonstrates.