Goldman Sachs to Start Trading Cryptocurrencies

Goldman Sachs (NYSE: GS) has announced plans to set up a cryptocurrency trading desk by June 2018. Currently, the firm is hiring a team in New York and is looking into fundamental issues such as the ability to custody assets as well as ways they can meet client demands for access to cryptocurrencies. The company is one of the few large banks that has stepped foot in the cyrptocurrency market as other banks such as Citigroup and JPMorgan Chase were worried about volatility issues relating to asset and security.

Goldman is looking to ask some clients to set aside money equivalent to the full value of Bitcoin futures trades before clearing them since margins on other future contracts total to no more than 15%. The firm is aware of the high risk associated with these products and is taking slow steps to launch the new trading desk. This move will definitely encourage investors as well as other banks to get involved with the cryptocurrency market and open up their very own trading desks. As of right now, most investment has come from retail investors.

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