A new announcement by Goldman Sachs indicates that the bank will give up on crypto trading desks, at least for now. Instead, they wish to focus on new projects, like crypto custody products.
Goldman Sachs drops trading desk
A lot of people were shocked or even enraged when they heard the new announcement by Goldman Sachs. It would seem that trading Bitcoin is a more difficult concept that many have believed. This might be why the bank officially decided to drop its plans for opening a trading desk for cryptos. People familiar with the issue claim that regulatory framework simply isn’t clear enough.
Goldman Sachs is focusing on crypto custody in the short-term, which will bring more funds into the cryptocurrency sector than a trading desk.
MSM is reporting today Bitcoin dropped 3% because Goldman Sachs "ditched" Bitcoin trading desk.
Speechless. Unprecedented stupidity.
— Joseph Young (@iamjosephyoung) September 5, 2018
So, the bank did the only thing it could do — it moved the project further down the line and decided to dedicate its efforts to something else. This doesn’t mean that they will never get back to the trading desks. However, now is not the right time to deal with that, apparently.
While it is waiting for the better crypto regulations to arrive, Goldman will focus on something else. One of the new projects seems to include crypto custody products. This indicates that the bank is a cryptocurrency holder and that it will keep a close eye on the prices. The reason for the new project might be the goal of helping the large firms get comfortable with cryptos. Numerous analysts believe that reputable custody offerings are something that institutions need in order to become relaxed around cryptos.
The lack of proper regulatory solutions
For months, Goldman was asking for patience as it studied ways of entering the crypto trading industry. The crypto enthusiasts were patient, until a few weeks ago, when the bank’s executives started saying that there are too many factors out of their control. The bank’s spokesman ended up saying that they are exploring the best ways to serve clients. However, the statement also claims that there is still no conclusion regarding the scope of a digital asset offering.
The company has already started creating thee markets for those clients interested in BTC futures and contracts for difference. These will allow investors to guess Bitcoin’s price without the need to actually own the asset. Over time, Goldman made attempts to downplay the ambition to create a trading desk. They stated that the industry still requires exploring in order to serve the customers in the best way.
The bank first announced its interest in cryptocurrencies back in October 2017. Various reports from that time noted that the bank is studying the crypto industry and that it even has a special group devoted to this.
Then, in December of last year, the bank expressed the desire to put up a trading desk, likely before June 2018. It would be located in the securities division, which is where the company does most of its trading. After that, the next notable development came in April, when Justin Schmidt became the head of digital asset markets for the bank.
Finally, in May, new reports came in, stating that the bank would further explore trading desk, if only the regulations were proper. Apparently, they needed a way to deal with the risk of being a crypto holder. In the confusion, a new rumor emerged, claiming that the bank is about to open its trading desk.
However, in truth, the bank ran into regulatory issues, according to one of the sources. They were desperately trying to find some sign of regulatory change that would protect them and others from crypto trading risks. The biggest concerns were money laundering, the lack of governance, huge volatility, and the lack of legal frameworks that would protect consumers.
For the latest cryptocurrency news, join our Telegram!
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of J J via Flickr
Reasons Why You Are Much Safer When Crypto Trading on Dexes
While many cryptocurrencies aim to bring the change to the world by bringing full decentralization, one aspect of the crypto space still remains mostly centralized, and that is the way they are exchanged. Most crypto exchanges are centralized companies, where traders and investors need to deposit their coins for safekeeping. This is a risky way to handle the funds, as exchanges remain susceptible to hacks and theft, as many realized recently, after the hack of the world’s largest exchange by trading volume, Binance.
During the hack, around 7,000 BTC (over $40 million) was taken, and sent to multiple wallets, never to be seen again — for now, at least. The hack also came as quite a shock, as Binance was known for its efficiency, security, and high levels of confidence. It also made people realize that their coins are not really theirs if they need to rely on third parties, such as exchanges, to keep them safe. As a result, many are now turning away from centralized exchanges, and are heading towards decentralized ones — also known as DEXes.
Here are some reasons why you might want to consider doing the same.
1. True ownership of your coins
The crypto community has a saying: “not your keys, not your coins.” The saying is now more relevant than ever, but it does not apply on DEXes. Decentralized exchanges…
Crypto Billionaire Predicts Massive Price Growth by 2021
Crypto prices are once again going up, and Bitcoin has just passed a major resistance level at $6,000. With a situation like that, it is not surprising that everyone in the crypto community is looking forward to the future, wondering what to expect in years to come. Many experts have already given their predictions, some more optimistic than others, but almost all bullish.
Crypto billionaire Mike Novogratz has always been very supportive of cryptocurrencies, and very bullish on Bitcoin. He recently stated that he sees the coins’ prices triple in the following 18 months, meaning that Bitcoin’s return to $20,000 might not be far away, according to him.
He noted that Bitcoin is back to $6,000 after its price hit as low as $3,100 only a few months ago. These days, Novogratz does not believe Bitcoin will return to such lows unless there is a devastating exchange hack or a major shift in regulations. Of course, there was a big hack that had the potential to damage the coin’s price, only days ago. The world’s largest crypto exchange by trading volume, Binance, saw a significant security breach which resulted in a theft of 7,000 BTC.
However, so far, the coin did not react negatively to this incident. While Novogratz believed that such an event would shatter the new confidence in BTC, it simply did not happen. However, he…
TokenRoll (TKR) Platform Will Take Online Casinos to the Next Level
Corporate executives are turning to blockchain technology more than ever in an attempt to revolutionize the business world. Although blockchain is still a relatively new concept, that hasn’t stopped more and more companies from jumping on the bandwagon. This hot new technology has quickly gained a reputation for providing greater transparency, enhanced security, improved traceability, increased efficiency, and low costs. One industry that could certainly benefit from decentralization is the online gambling market, specifically, online casinos. TokenRoll (TKR) has developed a platform that appears to offer a promising alternative to centralized casinos.
Problems with Centralized Casinos
The primary reason why blockchain technology is being implemented so quickly is because it solves a lot of the problems typically associated with the traditional business model. And online casinos are no different. It still needs to be said that centralized casinos have proven that there is a great demand for online gambling. The market is growing faster than anyone could have predicted, and future opportunities appear very promising and lucrative. But industries are continually evolving and this one is no different.
A few of the problems facing centralized casinos include the following:
- Little to no transparency
- Consumer lack of confidence
- Privacy concerns
- 48-72 hour wait time for withdrawals
These are four monumental issues that need to be addressed quickly given the global growth of the market. Casinos need to…
BitStarz Player Smashes Record – Wins $2.4 Million on Azarbah Wishes!
The Bitcoin Revolution: Everything You Need To Know To Take Profits
3 Altcoins That Are Outperforming Bitcoin and Will Likely Face Consequences
Altcoins6 days ago
Why Tron (TRX) Price Won’t Remain Low for Long
Altcoins6 days ago
Why Binance May Be Crucial for Tron (Trx) to Reach $1
Altcoins2 weeks ago
Justin Sun Bullish On TRX and BTT
Hot Updates2 weeks ago
Social Gaming Platform Offers Crypto Community Unrivalled Multi – Gaming Experience with Fair Odds
Bitcoin1 week ago
4 Reasons Why the New Bitcoin Rally Is Unlikely to Stop Now
Altcoins6 days ago
3 Cryptocurrencies Most Likely to Follow Bitcoin’s Performance
Trade2 weeks ago
eToroX launches gold and silver stablecoins
Altcoins2 weeks ago
XRP Continues to Struggle Despite the Bullish Market