New York-based multinational investment bank and financial services firm, Goldman Sachs has reportedly halted plans of launching its DLT-based digital assets trading desk till further notice, as first reported by Business Insider on September 5, 2018.
No Bitcoin Trading Desk for Now
Per sources close to the matter, Goldman Sachs investment bank has temporarily pushed back plans of launching a cryptocurrency trading desk, citing regulatory uncertainties in the United States.
According to Business Insider, the highly reputed financial institution has not entirely given up on its crypto trading ambition but has only relegated it down its scale of priorities.
The news seems to have triggered a minor bearish sentiment in the cryptocurrency market, sending the price of bitcoin down to the $6,962 price region at press time.
It’s noteworthy that Goldman Sachs only joined the crypto bandwagon just recently.
Back in February 2018, Steve Strongin, the head of global investment at the firm compared the crypto rave to the dot-com bubble, further predicting that a vast array of cryptocurrencies, will hit ground zero.
“People seem to be trading cryptos as though they’re all going to survive, or at least maintain their value. The high correlation between the different cryptocurrencies worries me,” he stated at the time.
Interestingly, in May 2018 reports emerged that Goldman Sachs was moving ahead with plans to launch its cryptocurrency trading desk and hired renowned cryptocurrency trader Justin Schmidt, to make the venture a success.
The spokeswoman for Goldman Sachs, Tiffany Galvin confirmed the move at the time, claiming that the decision is aimed at satisfying the yearnings of clients.
“In response to client interest in various digital products, we are exploring how best to serve them in the space,” she said at the time.
Cryptocurrency Custody a Top Priority
It’s worthy of note that despite Goldman Sachs somewhat controversial stance on cryptos at times, the firm appears to be very much interested in cryptos.
Back in January, analysts from the firm published a nine-page report titled “Bitcoin as Money.” The paper detailed how digital assets can function effectively as money and not a commodity.
According to a Bloomberg report, August 6, 2018, Goldman Sachs made it clear it was looking to become a digital assets custodian, but the firm, however, did not set a timeframe for the rollout of the service.
While the company has indefinitely postponed the kick-off of its crypto trading operations, Goldman Sachs has however made it clear that its virtual currency custodial service launch is just around the corner.