Ditching plans to launch a cryptocurrency trading desk “fake news.” ,says Goldman Sachs CFO

GS is working on bitcoin derivative for clients, Goldman Sachs Chief Financial Officer Martin Chavez called a report that the bank was ditching plans to launch a cryptocurrency trading desk “fake news.” Chavez says the bank is working on a bitcoin derivative known as a “non-deliverable forward,” because of demand from clients. He looked to knock down the report about the banking dialing back plans, but also make clear that there’s never been a timeline for this effort. (CNBC)

CNBC is reporting that all the mess about GS getting out of crypto are just wrong:

A top Goldman Sachs executive looked to clear the air Thursday about the bank’s cryptocurrency ambitions after reports that it was abandoning plans to open a trading desk for cryptocurrencies.

“I never thought I would hear myself use this term but I really have to describe that news as fake news,” Goldman Sachs Chief Financial Officer Martin Chavez said on stage at the TechCrunch Disrupt Conference in San Francisco.

The CFO said Goldman is working on a type of derivative for bitcoin because “clients want it.”

“The next stage of the exploration is what we call non-deliverable forwards, these are over the counter derivatives, they’re settled in U.S. dollars and the reference price is the bitcoin-U.S. dollar price established by a set of exchanges,” Chavez said.

As for physical bitcoin, Goldman is not quite there. There needs to be a safe custody solution before the bank can move forward, the bank’s CFO said.

“Physical bitcoin is something tremendously interesting, and tremendously challenging,” he said. “From the perspective of custody, we don’t yet see an institutional-grade custodial solution for bitcoin, we’re interested in having that exist and it’s a long road.”

Goldman Sachs reportedly ditches plans to trade cryptocurrencies from CNBC.

Tags: Technology, crypto, cryptocurrencies, crypto market, eth, etc, btc, bch, prices, bull market, bitcoin etf, etf,

Mohsen Daemi
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