Goldman to Add Crypto Contracts Without Trading Bitcoins


Don’t call Goldman Sachs Group Inc.’s long-awaited Bitcoin-trading business a full-fledged desk, and don’t expect it to buy and sell Bitcoins, at least at first.

The bank, preparing to pioneer a new cryptocurrency market on Wall Street, plans to start small and offer a limited number of derivatives, according to a person briefed on the decisions. It will trade Bitcoin futures in a principal, market-making capacity and will also create non-deliverable forward products.

Wall Street firms began offering clients futures from Cboe Global Markets Inc. and CME Group Inc. in December. But one issue with buying and selling actual Bitcoins is that they can be stolen by hackers. That means any bank looking to facilitate those transactions will have to figure out how to guard such assets, a step that could require a nod from regulators.

Goldman Sachs already hired Justin Schmidt as head of digital asset markets to help clients gain exposure to cryptocurrencies. At least preliminarily, he will sit on the firm’s currency desk, the person said, asking not to be identified discussing internal plans.

The New York Times reported the bank’s decision to offer forward products earlier Thursday, noting that the business will start in the next few weeks. That means Goldman’s project is on track: People familiar with the bank’s plans said late last year that firm aimed to have its new business running by the end of June.

Previous articlePrivate school operators in Enugu endorse Ugwuanyi for 2nd term
Next articleNigerians awaiting execution in Saudi Arabia writes open letter to Buhari, pls save us
Godwin Okafor is a financial journalist, Internet Social Entrepreneur and the Founder Naija247news Media Ltd He has over 16 experiences in journalism, which cuts across traditional and digital media. He started his journalism career in Business Day, Where he was a senior editorial graphic artist, before he left to start Naija247news, An Online Financial Newspaper in 2010. He has won series of awards and he is the chairman of Emmerich Resources Limited, the publisher of and also sits on the board of Students In Business Awards, (SIBA).


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.