Goldman Sachs to Launch Bitcoin Trading Desk "in the Next Few Weeks"


An exact date for the start of trading has not been set but the trading operation is expected to launch in the next few weeks.

Even though Goldman will not be buying or selling bitcoin, the bank has created a group to consider such market-making provided it receives regulatory approval and can come to grips with the additional risks surrounding virtual currency.

Rana Yared, one of the Goldman executives overseeing the creation of the trading operation, said the bank was clear-eyed about what it was getting itself into. "For nearly every person involved, there has been personal skepticism brought to the table".

Interest received from hedge funds, endowments, and other institutional investors fueled Goldman Sachs' initiative.

Don't call Goldman Sachs's long-awaited Bitcoin-trading business a full-fledged desk, and don't expect it to buy and sell Bitcoins, at least at first.

Moving forward, the company says it is looking to trade Bitcoin directly to its clients.

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San Francisco giant banks and other financial institutions have tried to keep away from scandal-tainted virtual currency bitcoin. Clients will not necessarily be trading the coins themselves, but they will instead be able to trade in a variety of contracts that are linked to the prices of cryptocurrencies such as Bitcoin.

Since the beginning of the year, the price of Bitcoin has plunged - and recovered significantly - as traders have faced uncertainty about how regulators will deal with virtual currencies.

As reported by The New York Times, Goldman Sachs executives are still pretty much holding on to their skepticism over the new technology, but they are reportedly confident that they will be able to create a system that would minimize its risks.

According to Ms. Yared, "It is not a new risk that we don't understand, It is just a heightened risk that we need to be extra aware of here".

Recently, the bank hired renowned cryptocurrency trader Justin Schmidt, which further hinted it was venturing into trading Bitcoin and other cryptocurrencies. Schmidt, who will be handling the bank's daily operation, has previous experience at hedge fund Seven Eight Capital before he entered the cryptocurrency trading market a year ago.