The New York Times has reported that Goldman Sachs, one of the largest financial institutions, is preparing to use its own funds to sponsor investment contracts tied to the Bitcoin.
The move into Bitcoin, was finally decided by a few senior figures at Goldman Sachs concluded that Bitcoin is not a fraud or simply a speculative bubble. This will make Goldman Sachs the first major Wall Street bank to open a Bitcoin trading desk.
Fortune reports that the bank will begin offering a limited number of derivatives; trading Bitcoin futures in a principal, market-making, capacity. Goldman Sachs will also create non-deliverable forward products.
“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,” Yared said.
Goldman Sachs has already begun clearing trades for clients that buy and sell futures via the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE).
The launch of the new trading desk will see the bank use its own capital to pursue futures contracts on behalf of its clients. Justin Schmidt, a recent hire, will be its head of digital asset markets to help clients gain exposure to cryptocurrencies.
Image Used, is not an actual representation of Goldman Sachs Bitcoin Desk.
