Investment banking colossus Goldman Sachs is poised to utilize its own money in trading Bitcoin on behalf of his clients. The most titular name in the finance industry is going to take risks, as he plans to set up his own crypto-trading desk at a Wall Street bank.
The step is deemed to legitimize all virtual currencies, though it is likely to create concerns for Sachs. The decision will see the bank using its own money to trade with clients in various contracts linked to the current price of Bitcoin.
It is worth noting, however, that Sachs is not involved in buying and/or selling of the actual cryptocurrency. Instead, his team at the bank will be in charge of paving the direction needed. Meaning it would have to acquire regulatory approval, so it can manage to deal any risk associated with holding the digital asset.
Full Speed Ahead
According to one of Sachs’ executives, Ryan Yared, the bank is fully aware of the direction it is taking. Yared is among the people in charge of overseeing the creation of Sachs’ trading operation. Although he does not see Bitcoin taking over the world, Yared believes in its potential. Sure, this move would have been deemed preposterous a couple of years ago, but considering Sachs’ as a vaunted banker on Wall Street, it is only expected from him.
In fact, it is revealed that Sachs’ very own board of directors has greenlighted his decision. They have also hired Justin Schmidt, a digital asset trader, to spearhead the daily operation. Schmidt was known as a trader at Seven Eight Capital, a hedge fund company, before leaving to pursue crypto-trading.
Bitcoin surfaced sometime in 2009 and was created by an unknown figure going by the name of Satoshi Nakamoto. Ironically, he was rumored to have started the cryptocurrency in hopes of replacing Wall Street banks rather than giving them a brand new revenue source.
A few years later, the digital currency has captured a number of hedge funds and well-known investors across the world. Companies involved in the tech industry, in particular, have integrated Bitcoin in their payment processes, further cementing the cryptocurrency’s value on the market.
Not a Fraud
Despite the ongoing skepticisms, Sachs is confident that Bitcoin is not a fraud. And while it does not have any characteristic similar to a currency, his clients have reportedly expressed interest in holding Bitcoin as a valuable commodity similar to gold. It cannot be denied, however, that the decision comes with a great number of uncertainties.