- Goldman Sachs is close to roll-out its first crypto-related service on its trading desk
- The institutional bank’s users will be able to trade crypto options and futures publicly
- Despite several warning from regulators globally, the bank is taking forward steps related to crypto assets
- With crypto services, the bank is also investing in few crypto startups
Goldman Sachs is the Wall Street giant with a crypto ambitions plan. The bank had earlier revealed its plans to offer crypto-related services to its clients. Recently the bank announced that it has plans to provide options and futures trading in Ethereum’s native coin ETH. According to Mathew McDermott, head of digital assets at the bank, the services will start within a few upcoming months. Since the bank re-established its trading desk, it is the first bigger step.
Goldman Sachs users can publicly trade crypto futures
Goldman Sachs has announced its first bigger step related to cryptocurrency. The bank had re-established its trading desk. The main purpose behind the start was to help its users deal in publicly traded futures that are tied to Bitcoin.
Moreover, the bank also has plans to facilitate trades through exchange-traded funds that will track the price of Bitcoin. Notably, within a few upcoming months, all these planned features will get started for the users to enjoy trading crypto assets. Notably, the services will only be available for the bank’s few qualified clients.
Regulators are concerned regarding cryptocurrencies
During mid-May, the entire crypto market faced a tremendous crash when prices of several cryptocurrencies fell sharply. One of the biggest reasons behind the impact is the concerns of regulators. As digital assets are getting more popular globally, the rate of financial crime increases, as per regulators.
Indeed, the decentralized nature of such assets has made it difficult for regulators to track malicious and illicit actors. Hence the regulators are publishing caution that cryptos are poised with risk.
Goldman’s plans are unhindered by regulatory concerns
Despite several warnings from the regulators, Goldman Sachs is still stepping ahead with cryptos. Moreover, the bank also ignored the fall in prices, which had proved the volatile nature of the assets.
According to McDermott, the bank has actually seen a lot of interest from its users regarding digital assets like Bitcoin. Unsurprisingly, the users were eager to trade as they found the current price levels as a slightly more significant time to enter the market. McDermott also mentioned that the bank sees the scenario as a cleansing exercise to reduce the system’s little leverage and excess. In contrast, the factors are considered from the retail perspective.
Goldman’s investments in crypto startups
Despite adding services related to crypto for its clients, Goldman Sachs has also invested in crypto startups. Blockdaemon, a firm that builds and hosts nodes making blockchain, has received $5 million from the bank. Moreover, the bank also has invested $15 million into CoinMetrics, and an on-chain data provider.
According to McDermott, the bank is looking for a number of different firms that fit into its strategic direction. Moreover, he was optimistic as he stated that institutional adoption of cryptocurrency would continue.
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