Goldman Sachs Backpedals on Its Plan to Launch Bitcoin Trading Desk Due to Legal Uncertainty

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Wed, 09/05/2018 - 20:26
Alex Dovbnya
After months of considerations, Goldman Sachs finally decides not to open a Bitcoin trading desk, focusing on crypto custody
Goldman Sachs Backpedals on Its Plan to Launch Bitcoin Trading Desk Due to Legal Uncertainty
Cover image via U.Today

American banking behemoth Goldman Sachs is not going to open its highly-anticipated Bitcoin trading desk after hitting regulatory roadblocks, according to a Business Insider report. However, the bank doesn’t rule out the possibility of trading digital assets in the future while currently focusing on developing its crypto custodial service.

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Bitcoin trading desks turning into a pipe dream   

Back in May, U.Today reported about Goldman’s intentions to launch a Bitcoin trading desk. The announcement enticed many speculations in the crypto community about digital assets slowly but steadily hitting the mainstream. However, the bank has recently ditched the plan due to the fact that digital assets still remain in a legal grey zone. It may consider opening a crypto desk again if there is a clear regulatory framework for cryptocurrencies on the horizon.

The bank has been exploring the rapidly growing industry for months before coming to the conclusion that they are not ready to embrace crypto trading.

There’s still interest in crypto

Goldman Sachs has been cautiously studying digital assets since October 2017 when a new group was reportedly formed to specifically focus on the burgeoning cryptocurrency industry. During the December crypto boom, the bank made public its intentions to open a Bitcoin trading desk by June 2018. However, the regulatory hurdles made them postpone the plan.   

In May, the bank started trading Bitcoin futures on behalf of its clients. This October, the US investment giant will also welcome its newly appointed CEO David Solomon who is known for his pro-crypto stance.

On top of that, Business Insider states that the bank is currently focusing on its crypto custodial service that would safeguard digital assets. The exact date when Goldman will start acting as a custodian for cryptocurrency holders is currently unknown.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.