TL;DR – Goldman Sachs, a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base is venturing into cryptocurrency industry in 2018.
Goldman Sachs will be jumping into the cryptocurrency industry in the middle of 2018. The firm will be offering assets of the digital nature for trading due to increased demand.
Traditional money flows into the emerging market, Goldman responds.
The firm is pioneering the way as a traditional established player to take steps to enter the cryptocurrency market and welcome Bitcoin and its peers in their entirety.
Goldman Sachs has responded to cryptocurrency demand by taking efforts to establish an in-house team to handle and address the different matters that will be related to the upcoming deployment of their trading desk for this sector.
They are looking into various aspects of how to safely provide services and minimize their liability in case of issues. Thus, they are researching the different problems that come with the act of stepping into the industry and are looking at ways to manage these potential problems.
A significant point that they have run across is the idea of how to safely collect and keep these digital assets since they will be the ones who are responsible for acting a custodial manner for these assets in the digital realm.
Goldman has also stepped into the trading of futures albeit with stringent requirements for customers, (requiring margins that some may perceive as too conservative).
This is one financial institution that has looked at the advent of the digital currencies more reasonably, at least in most instances, and have taken actions that are in line with their reasoning. Many other institutional peers have stayed away from the market for various reasons, a common reasons being volatility and lack of regulation.
Adoption and Perception from other firms
As the cryptocurrency and blockchain industry grows, other firms are looking at the emerging technology and overall sector in different lights. A few firms choose to adopt the underlying blockchain technology in small scale and make continuous movements into the blockchain space without touching Bitcoin at all. While others are looking at the market from a more holistic perspective and researching different opportunities that might forms of revenue in the present and the long term.
Examples of firms utilizing the blockchain technology are increasing, as traditional exchanges in various countries switch from their current mode of operation for clearing transactions and switch to blockchain based technologies.
There is also an uptick in various firms seeking to deploy mutual fund like products and other traditional financial products solely focused on the cryptocurrency sector.
Bubble Talk Shifts for some
Along with this rise is a shift in the minds of some financial representatives in regards to the notion of a bubble.
A recent comment by a Charles Schwab executive was:
“…I think the Bitcoin bubble if you want to call it that, is something different. If prices for Bitcoin were to plunge suddenly, because it’s so independent from the financial system, it’s kind of its own thing. It hasn’t yet become embedded in the economy and the financial structure.”
While others in the financial industry have noted that it is necessary to look at the emerging virtual currencies like Bitcoin in a different light, assuming “pure speculation” may mean that many are not conducting their due diligence and doing their “homework” on the matter.