Goldman Sachs Retracts Bitcoin and Crypto Trading Desk Plans

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The report cited sources close to the firm who claimed that the bank doesn't consider opening a cryptocurrency trading desk as a priority right now, citing the lack of regulations in the market as a deterrent. Furthermore, even as many banks and institutional investors are dipping their toes into the world of cryptocurrencies, concerns over everything from market manipulation to regulatory uncertainty have prevented institutional adoption.

Some believe it could position itself well in the eyes of Wall Street with a combination of a custodial service and Bitcoin futures trading.

As reported by CNBC, Goldman Sachs Chief Financial Officer Martin Chavez is calling the report "fake news".

Korea Post president Kang Seong-ju said in an interview that he discussed cryptocurrencies with David Solomon, the incoming CEO of Goldman Sachs Group Inc, at a recent meeting in NY. When those plans were stymied by the Securities and Exchange Commission, the price plummeted to below $7,000.

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Chavez also said Goldman was trying to develop over-the-counter derivatives for Bitcoin.

He continued to say that they will be settled in US dollars and that the reference price would be the Bitcoin-US dollar price, which will be established by a set of exchanges.

In the interview for Bloomberg, the post service's president, Kang Seong-ju, confirmed that KP officials would also travel to Hong Kong to meet with Goldman's dedicated and recently formed cryptocurrency team. It is important to note that the announcement made by Goldman Sachs did induce temporary volatility in the cryptocurrency market with popular Bitcoin in particular quickly losing more than 400 USD dollars in minutes.

His comments came after Business Insider issued a report on Wednesday, suggesting the financial services giant would be scrapping its plans to trade cryptocurrency. Rather, it said that the bank was choosing to focus on other products, most notably a custody product, which would allow institutions to store cryptoassets with the firm.

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Chavez also remarked how the exploration of digital assets was something that "would be evolving over time".

Already this year Bitcoin has shed half of its value.

Describing physical Bitcoin as "something tremendously interesting, and tremendously challenging", Goldman's CFO emphasised on the need of a safe custody solution for the cryptocurrency.

When speaking about a custodial solution for Bitcoin, Chavez said Goldman does not now see an "institutional grade custodial solution".

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