Goldman Sachs Is Believed To Have Set Up Digital Currency Trading Desk

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Do not refer to the long-awaited bitcoin trading business of Goldman Sachs as a full-fledged desk, and don’t expect the business to immediately start buying and selling Bitcoin. The financial institution, which is preparing to pioneer a new digital currency trading platform on Wall Street, plans to begin small and provide only a limited number of derivatives – according to someone close to the decisions.

The Trading Scope of the Firm

The company will trade futures for Bitcoin in a market-making, principal capacity, it will also create forward products that are non-deliverable. Wall Street organizations started offering customers futures from CME Group and Cboe Global Markets in December last year.

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The Issue with Buying and Selling Bitcoin

One common problem with selling and buying actual Bitcoin is that they are vulnerable to attackers. This means they can be hacked and stolen by hackers. This has led to the closure of some major crypto trading platforms in the world.

This means any bank that wants to facilitate the buying and selling of Bitcoin will have to look for better ways to secure the asset, a procedure that could require a nod from regulators. Goldman Sachs has already employed Justin Schmidt, and they have made him the head of digital asset markets to help customers get exposed to digital currencies.

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At first, Justin Schmidt will be sitting at the currency desk of the firm – according to a reliable source. The decision of the bank to offer forward products that are non-deliverable was reported by The New York Times. The report stated that the business will begin in a couple of months from now. That means the project of Goldman Sachs is on track.

When Will the Business Start?

Sources close to the bank said in December 2017 that the bank planned to have its new business up and running in June 2018.

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