Goldman Sachs Chief Financial Officer (CFO) has rubbished claims that Goldman Sachs have sidelined plans to open a crypto trading desk. Stating the reports are “fake news”, as reported by CNBC .
Martin Chavez reportedly said that reports about the company’s intentions for a crypto trading desk were unfounded, whilst attending the TechCrunch Disrupt Conference in San Francisco.
“I never thought I would hear myself use this term but I really have to describe that news as fake news.”
Although Goldman Sachs have never directly stated they intend to launch a cryptocurrency trading des. The rumours surfaced back in December 2017 after a report by Bloomberg hinted at such a venture. Although 9 months later it was reported by Business Insider that an unarmed source had revealed the investment banking giants would. not be going ahead with their ‘crypto trading desk’ plans.
Chavez suggested that the excitement over a potential trading desk may have been premature. CNBC quotes him saying:
“When we talked about exploring digital assets […] it was going to be exploration that would be evolving over time. Maybe someone who was thinking about our activities here got very excited that we would be making markets as principal and physical Bitcoin, and as they got into it they realized part of the evolution but its not here yet.”
“Physical bitcoin is something tremendously interesting, and tremendously challenging. From the perspective of custody, we don’t yet see an institutional-grade custodial solution for Bitcoin, we’re interested in having that exist and it’s a long road.”
The cryptocurrency markets dropped by almost $40 billion following this news, although it is not certain that this is what caused the downward trend. Others have speculated that it could be based upon the 111,000 BTC which has began moving linked to a Silk Road wallet. Others have simply argued that the sharp fall was a healthy correction after a promising start to the month of September.
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