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Goldman Sachs to open a Bitcoin trading operation

03 May, 2018
by Ryan McInally
News
Goldman Sachs to open a Bitcoin trading operation

Goldman Sach's set to launch the first Bitcoin Trading Operation on Wall Street

Goldman will hold off on buying and selling Bitcoins until it secures regulatory approval and works out issues related to the risks of holding virtual currency such as coins being stolen by hackers but there goal is clear: a fully functional Bitcoin trading operation.

According to the New York Times, one of the Goldman Sach’s executives Rana Yared described herself as not a “true believer who wakes up thinking Bitcoin will take over the world” followed up by stating that “Almost every person involved, there has been personal skepticism brought to the table”. The skepticism is a common belief among many bankers, including Jamie Dimon, the chief executive of JPMorgan Chase, who notoriously called Bitcoin a “fraud” while others in the finnacial and banking sector have called it “nothing more than a speculative bubble”. Twitter users were quick to give the big bank a well deserved jab. 

This skepticism hasn’t stopped the company from pushing forward with their efforts to include Bitcoin to their portfolio of tradeable commodities. Last December, commodity exchanges in Chicago made a move to allow customers to trade Bitcoin futures contracts.

The move from a big bank to trade Bitcoin and potentially other cryptocurrencies is expected to help legitimize the currency and send a clear message to regulators that cryptocurrencies have value and they aren’t going anywhere.

There are some concerns that Goldman Sachs has a history of trading complicated products as they are linked to selling synthetic derivatives that were tied directly to the subprime mortgage markets and ultimately the subprime mortgage crisis.

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