With Goldman Sachs setting up a trading market for bitcoin, Wall Street finally seems to be welcoming digital currencies. The multinational finance firm will launch the trading desk by the end of June 2018, as reported by Bloomberg.
Despite its world-wide popularity, bitcoin is still a controversial asset. The coin started trading at $1,000 in the beginning of this year. It recently reached over $19,000 on some exchanges, having grown by 1,700%. The coin’s volatility, and lack of regulation, is what has been keeping it from gaining mainstream popularity in the Wall Street.
Moreover, hacks and fraudulent activities are also frequent in the crypto market. Several prominent cryptocurrencies have undergone hacks in the past, resulting in the loss of millions of dollars worth of digital assets. Goldman Sachs is not oblivious to such security threats. The firm is already working on making their trading desk as secure as possible.
The revelation came as a surprise, as the firm’s CEO has been publicly skeptical about the trading bitcoin. Last month, he stated that his bank does not need a bitcoin strategy at the moment. “Something that moves up and down 20% in a day doesn’t feel like a currency, doesn’t feel like a store of value,” he said.
Things have changed...
Things, however, have changed. When asked last month whether his firm would be supporting bitcoin in future, he said “we will think about it”. Now with this news, the bank clearly has made up its mind.
“In response to client interest in digital currencies, we are exploring how best to serve them,” a spokesman stated. This substantial step will make Goldman Sachs the first large Wall Street firm to support bitcoin.
The American multinational firm is already bringing together a team in New York, reports claim. It remains unknown at the moment as to where the trading platform will be held. According to unnamed sources, the bank is currently exploring possible strategies and opportunities. The desk will probably be based on the firm’s systematic trading function, which conducts transactions electronically.
Currently, only a few other mainstream firms are offering bitcoin futures, including CME Group and Cboe Global Markets. Others, however, are still cautious as they take their time to observe the coin’s progress.
The legality of cryptocurrencies has been called to question several times. This move is especially important for bitcoin as it will win the currency a significant financial company’s approval.