Goldman Sachs Opening Bitcoin Trading Desk

Goldman Sachs to Begin Bitcoin Futures Trading Within Weeks

Goldman Sachs will begin Bitcoin trading operation soon

The bank, preparing to pioneer a new cryptocurrency market on Wall Street, plans to start small and offer a limited number of derivatives, according to a person briefed on the decisions. In November a year ago, the CEO of Goldman said that bitcoin trading is a "Vehicle to perpetrate fraud". However, #Goldman Sachs has recently announced that they are actually moving ahead with starting an internal Bitcoin trading operation that will be offering clients options to invest in Bitcoin and other cryptocurrency futures.

Less than a fortnight since then, the bank confirmed setting up its bitcoin desk.

The decision to trade bitcoin contracts contains numerous points which Goldman would have to tackle, including the notorious price manipulation on exchanges, over which regulatory action remains scanty.

Goldman Sachs in the future the bank will develop the crypto-exchange industry only after approval of the Securities and Stock Exchange Commission of the United States.

As reported by The New York Times, Goldman Sachs executives are still pretty much holding on to their skepticism over the new technology, but they are reportedly confident that they will be able to create a system that would minimize its risks. In his last job, Mr. Schmidt, 38, was an electronic trader at the hedge fund Seven Eight Capital. "It is just a heightened risk that we need to be extra aware of here".

Investment banking colossus Goldman Sachs is poised to utilize its own money in trading Bitcoin on behalf of his clients.

The step is deemed to legitimize all virtual currencies, though it is likely to create concerns for Sachs. The bank has been clearing bitcoin futures for a few clients similar to another major bank Morgan Stanley (NYSE:MS). What made the investment firm take the plunge? Among other things, it has started an online lending service, known as Marcus, that has brought the firm into contact with retail customers for the first time. The instability and high risk of the virtual currencies are the main reasons why most financial institutions have so far been staying away from investing their time and money into trading them.

"In terms of having a trusted institutional player, it has been something I have been looking for in my own crypto trading but it didn't exist", Schmidt said.

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