Goldman Sachs, an investment banking giant, is set to introduce a bitcoin trading desk. It is considered to be a first for a major bank in Wall Street.
A spokesperson from Goldman Sachs stated: “In response to client interest in various digital products, we are exploring how best to serve them in the space.”
The New York Times first reported that the bank will not initially sell or buy actual bitcoins. However, it will trade with clients in a variety of contracts that are linked to the price of the volatile digital currency.
An analyst at eToro, Matthew Newton, stated: “This shouldn’t come as a huge surprise to anyone who has been paying attention to cryptocurrencies over the last 18 months. Any forward-looking financial institution needs to understand this technology and accept its enormous potential.
Newton added: “It will still take time for institutional investors to fully come around – and the fact that Goldman won’t be buying or selling actual coins suggest some scepticism remains – but there’s a growing acceptance that these assets are here to stay.”
Last April, Goldman Sachs hired Justin Schmidt, to serve as the new head of digital assets of the bank as it grappled with how to answer the demand of its clients for cryptocurrencies.