Goldman Sachs Chief Financial Officer Martin Chavez said that recent reports about the company abandoning its plans to open a cryptocurrency trading desk are “fake news”.
Rumors that Goldman Sachs planned to establish a crypto-focused unit by the end of 2018 were initially reported by Bloomberg in December last year. However, on September 5, Business Insider reported that unnamed sources said the firm is scrapping crypto trading desk plans due to an unclear regulatory environment in the crypto industry. Chavez suggested that the excitement over a potential trading desk may have been premature.
While Goldman has been clearing and providing liquidity for Bitcoin-linked futures contracts from the CBOE and CME, Chavez said there needs to be a reliable custody solution before the bank can proceed with physical Bitcoin (BTC).
Chavez noted that the company is working on a type of Bitcoin derivative, non-deliverable forwards, which are over the counter derivatives settled in U.S. dollars. The reference price is reportedly the Bitcoin/USD price established by a group of exchanges.