Goldman Sachs Launching Crypto Trading Desk, Says Bitcoin Is Not a Fraud and Not a Currency

Goldman Sachs is planning to open a Bitcoin trading operation in the next few weeks. At first, the financial giant will use its own funds to offer a select number of derivatives, reports the New York Times.

Moving forward, the company says it is looking to trade Bitcoin directly to its clients.

Rana Yared – the executive creating the Bitcoin operation – says Goldman is still skeptical about crypto, but decided to listen to customers who want to trade digital currencies. From the New York Times:

“Ms. Yared said Goldman had concluded that Bitcoin is not a fraud and does not have the characteristics of a currency. But a number of clients wanted to hold it as a valuable commodity, similar to gold, given the limited quantity of Bitcoin that can ever be ‘mined’ in a complex, virtual system.

‘It resonates with us when a client says, I want to hold Bitcoin or Bitcoin futures because I think it is an alternate store of value,’ she said.”

Goldman hired its first crypto trader, Justin Schmidt, a couple of weeks ago. He is reportedly looking through the regulatory mechanics of trading Bitcoin directly to clients.

Goldman has also backed Circle, a financial-services firm that is focused on cryptocurrencies and has partnered with US-based cryptocurrency exchange Poloniex.

Image Courtesy Zongo/Flickr

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.