The chief operating officer of Goldman Sachs, David Solomon, said clients are asking to trade cryptocurrency so the firm is holding discussions to consider that possibility. He says Goldman Sachs must “evolve its business and adapt to the environment”.
Goldman Sachs is a multinational investment bank headquartered in New York City that offers asset and investment management services. It is among the top nine largest banks in the world with assets of nearly USD 1 trillion and annual profits in excess of USD 10 billion. Goldman Sachs’ assets are three times more than the entire cryptocurrency market cap of USD 290 billion.
If Goldman Sachs starts to actively trade cryptocurrency for its clients, it has the potential to attract large amounts of institutional money into the cryptocurrency market, which could easily spark a rally.
Goldman Sachs was one of the first firms to participate in clearing Bitcoin futures contracts, after Bitcoin futures trading launched on the Chicago Mercantile Exchange and the Chicago Board Options Exchange in December 2017. In May 2018 Goldman Sachs confirmed that it would be launching a Bitcoin trading desk, perhaps to conduct over-the-counter (OTC) trading like some other big financial firms have experimented with.
Although Goldman Sachs hasn’t officially been involved with cryptocurrency trading, it did invest USD 50 million into Circle in April 2015, which has become a large and profitable cryptocurrency exchange in the United States. Circle facilitates the trading of several major cryptocurrencies and acquired Poloniex in February 2018, which offers dozens of different cryptocurrency trading pairs. Therefore, Goldman Sachs is indirectly involved in and profiting from a wide spectrum of cryptocurrency trading activity.
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