Goldman Sachs appear to be jumping on the Cryptocurrency bandwagon, despite previously denying that they’re delving into the digital assets industry.
The Wall Street giants have enlisted Justin Schmidt to head their digital assests division. Justin Schmidt, a former trader joined Goldman Sachs on 16th April 2018. This is a considerable step forward considering their response back in October from the CEO Of Goldman Sachs, Lloyd Blankfein
Still thinking about #Bitcoin. No conclusion - not endorsing/rejecting. Know that folks also were skeptical when paper money displaced gold.— Lloyd Blankfein (@lloydblankfein) October 3, 2017
Following this response there have been rumours circulating that Goldman Sachs have been intending to set up a trading platform dealing with cryptocurrencies. This may just be their first step and it comes as no surprise following the mass media attention that cryptocurrencies are attracting.
“In response to client interest in various digital products, we are exploring how best to serve them in the space,” Goldman Sachs spokeswoman Tiffany Galvin-Cohen said in a statement.
In response to increased demand for digital assets from clients, Goldman Sachs did introduce bitcoin futures back in December 2017 the bank became one of the few to start clearing Cboe and CME Bitcoin futures for clients when the derivative products launched. Serving as a middleman Goldman Sachs enables customers to gain access to Bitcoin on exchanges by placing an order via Goldman Sachs.
It is still early days and no conclusions can be drawn as to the direction Goldman Sachs are headed with this news but it is surely a positive move from the Wall Street Giants’
“At this point, we have not reached a conclusion on the scope of our digital asset offering,”
Justin Schmidt was previously senior vice president at quantitative trading firm Seven Eight Capital, and a quant trader at a proprietary firm, among other roles.