Goldman Sachs Launches Bitcoin Trading Ops

May 03, 2018 at 15:23

Goldman Sachs Group Inc., one of the largest investment banks in the US, is launching its own Bitcoin trading operation despite skepticism in the traditional banking industry towards the cryptocurrency, The New York Times reported.

The bank, through the bitcoin trading desk, will start trading its own funds for various investment contracts linked to Bitcoin price.

Eventually, its operations will be opened to the actual buying and selling of Bitcoins once it secures regulatory approval and learns how to manage additional risks arising from Bitcoin investments.

The report went on to say that Goldman Sachs has received interests from clients wanting to invest in Bitcoin like gold, said Rana Yared, one of the executives who directed the creation of the new trading desk.

“It resonates with us when a client says, ‘I want to hold Bitcoin or Bitcoin futures because I think it is an alternate store of value,’” she said.

The Goldman Sachs executive also said the bank had received inquiries from hedge funds, endowments and foundations seeking advise on how to handle Bitcoin donations.

“It is not a new risk that we don’t understand,” Yared said. “It is just a heightened risk that we need to be extra aware of here.”

Last month, Goldman Sachs hired cryptocurrency trader Justin Schmidt to head as its digital asset markets group.

Before joining Goldman Sachs, Schmidt worked at Seven Eight Capital LLC and WorldQuant LLC.

The move was “in response to client interest in various digital products,” the bank’s spokeswoman Tiffany Galvin-Cohen said.