No, Wall Street’s biggest firm is not setting up a trading desk. Earlier, reports revealed that Goldman Sachs were building their crypto trading desk but on Wednesday CEO David ‘DJ” Solomon denies the claim and states that the reports were incorrect.
When Bitcoin was mounting in Dec 2017, Bloomberg media had published an article stating that ‘Goldman is setting up a cryptocurrency trading desk’, however, Bloomberg mentioned that the reports were confirmed by ‘people with knowledge of the strategy’ and claims that business may begin by the end of June 2018.
However, later, in mid-2018, BusinesInsider media published a new report stating that the firm had pulled off its plan to launch a trading desk. The media also highlights ‘the plan is downgraded due to regulatory uncertainty towards Bitcoin and crypto industry’. Before these reports fueled on the web, Goldman’s former CEO Llyod Blankfein had shared mixed statements around ‘Cryptocurrency and Goldman’. He tweeted as;
Nevertheless, on April 10, 2019, Goldman Sachs’s present CEO ‘David ‘DJ” Solomon’ addressed a U.S. House of Representatives panel and put an end to this propaganda. He adds that the company had no such plans yet and says that the original Bloomberg article contains ‘inaccurate information’. In Solomon’s words;
“First, that Bloomberg article was not correct. Like others, we are watching and doing work to try and understand the cryptocurrency market as it develops.
Solomon addressed the community and said,
“We have some clients that have certain functionality that we’ve engaged with on clearing physically settled futures, but other than that we never had plans to open a cryptocurrency desk.”
On top of all, concerning the regulatory uncertainty, Solomon adds that;
“We might at some point [explore a desk] in time, but no question when dealing with cryptocurrency it’s a new area, there are a lot of issues…unclear from regulatory perspective and it’s not clear in the long-run if those currencies will be viable.”
Headquartered in New York City, Golmand Sach Group Inc., is an American Multinational Investment bank and financial service company, falling in competition with J.P. Morgan Chase & Co., which has recently announced the launch of its own cryptocurrency – JPM Coin.
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com