Published by Bloomberg– 22nd Dec 2017
At least one of Wall Street’s biggest firms is growing more comfortable with cryptocurrencies.
Goldman Sachs Group Inc. is setting up a trading desk to make markets in digital currencies such as bitcoin, according to people with knowledge of the strategy. The bank aims to get the business running by the end of June, if not earlier, two of the people said. Another said it’s still trying to work out security issues as well as how it would hold, or custody, the assets
The move positions Goldman Sachs to become the first large Wall Street firm to make markets in cryptocurrencies, whose wild price swings and surging values have captured the public’s imagination but given pause to established institutions. Already, the bank is among just a few mainstream firms clearing a new breed of bitcoin futures offered by Cboe Global Markets Inc. and CME Group Inc. Citigroup Inc. and Bank of America Corp., for example, have been taking a wait-and-see approach.
And when the bank began clearing futures earlier this month, it demanded that some clients set aside funds equal to the full value of their trade, people familiar with the policy said at the time. The conservatism deterred some customers and led them to take their business elsewhere.