Published: Sat, September 08, 2018
Markets | By Erika Turner

Goldman Drops Plans for Crypto Trading Desk

Goldman Drops Plans for Crypto Trading Desk

"Fake news" - that's how Goldman Sachs CFO Martin Chavez characterized a report that the investment banking giant was shelving its much-hyped plans to build a bitcoin trading desk.

In recent weeks, executives have come to the conclusion that many steps still need to be taken, majority outside the bank's control, before a regulated bank would be allowed to trade cryptocurrencies, the financial news website reported, citing one of the people. There are several steps that need to be fulfilled in order for the bank to enter the crypto market in this way.

Korea Post, which now oversees a $112 billion investment fund, will soon meet with executives from the Goldman Sachs research team to discuss digital assets, artificial intelligence and blockchain technology.

The CFO continued by reaffirming Goldman Sachs' exploration into the Bitcoin market, suggesting that interest into the area from the bank's clients has been high, and they are keen to have tradeable Bitcoin products in the near future.

Early on Wednesday, Sept. 5, cryptocurrencies experience a sharp drop in value, alarming investors and experts alike.

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ICOx Innovations Chairman Cameron Chell discusses his outlook on cryptocurrency technologies and why he supports regulations being placed on cryptocurrencies. Goldman Sachs will be proceeding to provide "crypto futures and forwards" for its clients. "They were not a part of the ecosystem yet, but to the extent that they represent the institutional herd, this is a negative", Kelly added.

The response to this news has been swift and negative. Overall, EOS seems to be down by roughly 15 percent over the last 24 hours, making it one of the largest single-day losses over the past week. Panic selling from the downtrend has likely kicked off a downward spiral that could continue until BTC prices hit support levels; some of which are as low as $5900.

In a recent interview, the Korea Post president revealed that he initiated a discussion with David Solomon, Goldman Sachs' new chief executive, noting, "I asked Goldman to pass on their know-how in the cryptocurrency area".

But since then, its value has steadily dropped, and following a number of crashes, the most popular cryptocurrency is now worth less than $7,000. Its low point is around $5800 for the year; will we see that in September?

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