Goldman Sachs is putting on hold plans to open a desk to trade cryptocurrencies, including Bitcoin, people familiar with the matter told Business Insider.
The bank is ditching plans to open a desk for trading cryptocurrencies in the foreseeable future, as the regulatory framework for cryptocurrencies remains unclear.
Currently Goldman is focusing on other projects such as a custody product for crypto, which would mean that the bank holds cryptocurrency and, potentially, keeps track of price changes on behalf of large fund clients. Many market observers have said that for large institutional firms to get comfortable trading bitcoin, there need to be reputable custody offerings to safeguard holdings.
“In response to client interest in various digital products, we are exploring how best to serve them in the space,” – a company spokesman said. – “At this point, we have not reached a conclusion on the scope of our digital asset offering.”
The firm already makes markets for clients in bitcoin futures as well as contracts for difference, which allow an investor to bet on the price of bitcoin without owning the underlying asset.