Goldman Sachs Group Inc is now going to finally set up its full-fledged bitcoin trading desk to carry out its business in the field of digital currencies, according to the information from people knowing the matter.
It is also said that the bank is also trying its best to work out on the security problems as to how it will hold on to the assets.
The desk will have the bank make use of its own money to trade with its clients based on different contracts that will be linked to the bitcoin’s price. It is presumed that those clients will be hedge funds which would further deal in bitcoin and cryptocurrency future contracts like the ones that are launched by Cboe Global Markets and CME Group in December last year.
But the only issue with buying as well as selling in the bitcoin market directly is that there are higher chances of them getting stolen by hackers. This means that any bank that plans to facilitate these transactions will first have to come up with ways to deal with the risks in guarding these assets. This is a step which would first need a permit from regulators.
The Wall Street bank giant has hired Justin Schmidt for the post of head of digital asset markets all ready to assist their clients to get exposure to the world of cryptocurrencies. The person having information on the decision further said that for now, Schmidt would assume a place on the Goldman Sachs’ currency desk.
The New York Times had earlier reported that Goldman Sachs’ has plans to provide forward products on Thursday, citing that the bank’s bitcoin desk will begin functioning in the next couple of weeks. This certainly means that the Goldman Sachs’ idea to embrace cryptocurrencies is falling on the right track. Moreover, the people who are known to the bank’s plan for running its new business said that the Wall Street bank plans to start the business by the end of June this year.