Goldman Sachs Postpones Crypto Trading Desk, What Will Be the Consequences?
Goldman Sachs has taken a step back from the crypto market and is postponing its highly-anticipated trading platform. Although Goldman Sachs has not directly confirmed a cancellation, numerous news sources are reporting that a crypto trading desk will not be introduced any time soon,
The bank is ditching plans to open a desk for trading cryptocurrencies in the foreseeable future, according to people familiar with the matter, as the regulatory framework for crypto remains unclear. / Business Insider
The origins of the platform date back to October last year, when Goldman Sachs began to explore the possibilities of crypto trading. In December, it was reported that the firm would have a crypto trading desk in operation by June, and the company had hired a head of digital assets by April. By May, it looked like the project was on its way to becoming a reality. Now, news reports cite a “regulatory roadblock” as the reason for the project’s cancellation.
It is possible that the cancellation will not affect the company’s more recent crypto-related services. Business Insider reports that
as Goldman pivots, it will compete with other firms looking to become the provider of choice for clients looking for custody services.
This refers to the fact that last month, the company announced a crypto custody plan which would hold and protect funds on behalf of investors.
Additionally, Goldman Sachs has subsidiary services such as Circle Invest that primarily handle crypto and will almost certainly not be affected.
It seems likely that this is not Goldman Sachs’ last word on crypto. Starting in October, David Solomon will serve as CEO and take a pro-crypto approach. He stated that the firm would “evolve its business and adapt” to the crypto market. As Wall Street moves towards crypto adoption, it is unlikely that Goldman Sachs will let itself be left in the dust. Nevertheless, Goldman Sachs dropping out of the crypto race, temporarily or not, could have dire consequences on the market.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.
