Global banking behemoth, Goldman Sachs is reported to be in the early stages of setting up a trading desk dedicated to Bitcoin and other cryptocurrencies.
According to a news report by Bloomberg, Goldman Sachs Group Inc. is planning for a launch date of late June 2018, if not earlier. At the moment, the bank is in the preparatory stage where they will be hiring software engineers to help with the mainframe. They will also have to plan out the logistics, which includes assets storage and security.
“In response to client interest in digital currencies, we are exploring how best to serve them,” Michael DuVally, a spokesman, said in a statement.
Just last Sunday, Bitcoin climbed to an all-time high of $20,052 according to CoinMarketCap. However, over the last 48 hours, the price of the largest cryptocurrency in the world went from the $19,000 range all the way down to $12,800 – a 37% decline. Because of their wild and unpredictable price fluctuations, Bitcoin and other cryptocurrencies have captured the public’s interest but have also given pause to the major financial institutions.
Therefore, with this move, Goldman Sachs will be the first large Wall Street firm to adopt cryptocurrencies under its wing. Also, since Goldman started to offer Bitcoin futures to its clients recently, it joins institutions like CBOE Global Markets Inc., CME Group Inc., and TD Ameritrade, who have been offering Bitcoin futures contracts over the last few weeks as well.
According to one of its representatives, Goldman Sachs is currently assembling a team in New York to work on this new project. Although the decision as to where to house the trading desk remains unconfirmed, there is a huge possibility that it will start operating in the fixed-income, currencies and commodities unit’s systematic trading function, where transactions are performed electronically.
It is still unsure as to how the prices of cryptocurrencies will react to this news. The introduction of major financial institutions into the crypto market over the last two weeks has resulted in a rough couple of days for most cryptocurrencies, with Bitcoin taking the brunt of the impact. To quote TechCrunch’s editor-at-large, John Biggs, “No one can currently predict what bitcoin and other cryptocurrencies will do for us in the future. Until we know, it’s best to buckle up and enjoy the ride.”