Goldman Sachs Paving the Way for Crypto Acceptance on Wall Street
Goldman Sachs is leading the Wall Street push for cryptocurrency acceptance.
Goldman Sachs’ recent decision to open a cryptocurrency trading desk seems to be a sign that the bluebloods of finance are starting to accept Bitcoin and digital assets.
In an article written for Forbes, CultureBanx CEO Kori Hale said that Goldman Sachs’ actions have raised the “legitimacy bar for digital currencies” as the Wall Street behemoth sets out to assist institutional investors in trading Bitcoin.
“They’re proceeding cautiously and will not trade actual Bitcoin initially. Instead, the bank will use its own money to trade Bitcoin futures contracts for clients. It will also trade non-deliverable forward futures where trades will be settled in the regulated currency it’s quoted in.”
She said that the investment bank decided to unveil its cryptocurrency-focused trading desk after receiving several inquiries from foundations, hedge funds, and endowments which have received contributions from Bitcoin millionaires.
Other banks to follow suit
In an interview with CNBC, Blockchain Capital partner Spencer Bogart welcomed Goldman Sachs’ decision and expressed confidence the move would pull in other banks and perhaps become a trend on Wall Street.
“It’s definitely a big step. I don’t think it’s a perfect solution, that all of a sudden opens the floodgates to the institutionalization of Bitcoin [...] Banks are not just going to follow just because it’s Goldman Sachs, and that’s what a lot of banks do, follow what Goldman does. This market is so large that you can’t ignore it anymore. I’m sure that most of these banks have heard about the numbers that companies like Coinbase and Binance are putting up. There’s a real risk that some of these companies could overtake some of Wall Street’s biggest banks if they don’t get in the market.”
Peter Thiel backs crypto startup
Another Wall Street heavyweight who has dipped his toes in the digital currency pool is PayPal founder Peter Thiel. The tech billionaire is investing in a startup that plans on taking cryptocurrencies closer to the masses by applying Wall Street’s electronic trading expertise to the digital space.
Thiel’s venture capital vehicle Founders Fund has invested an undisclosed amount in Tagomi, a company that wants to create trading tools for crypto players and provide solutions to the many issues holding back the digital currencies market.