Goldman Sachs puts crypto trading desk launch plans on hold – Report

Goldman Sachs is not going to open a bitcoin trading desk anytime soon, sources familiar with the matter have told Business Insider.

Earlier in May, The New York Times reported that Goldman Sachs is going to launch a cryptocurrency trading desk. The company also made the first hire for its cryptocurrency markets unit.

The company recently appointed David M. Solomon as the new Chairman and Chief Executive Officer. In an interview, Solomon told Bloomberg that Goldman Sachs must “evolve its business and adapt to the environment.”

“We are clearing some futures around Bitcoin, talking about doing some other activities there, but it’s going very cautiously,” he said. “We’re listening to our clients and trying to help our clients as they’re exploring those things too.”

The plan to open crypto trading desk, however, has now moved down the investment banking giant’s priority list due to the regulatory uncertainty in this area. Sources told BI that company executive identified a number of steps that need to be taken before a regulated institution like Goldman would be allowed to trade cryptocurrencies. Most of these steps are beyond the control of the company.

They said that the bank was looking for some regulatory changes that would have protected it from some risks unique to trading cryptocurrencies.

Goldman, however, is considering other projects to drive institutional investment in cryptocurrencies. This includes custody service for cryptocurrencies, in which the bank will hold cryptocurrencies and track price changes on behalf of its large fund clients.

"In response to client interest in various digital products, we are exploring how best to serve them in the space," a company spokesman said. "At this point, we have not reached a conclusion on the scope of our digital asset offering."