SolidX’s CEO, Daniel H. Gallancy, has stated that it would be impractical for anyone in the cryptocurrency space and the financial world to expect Goldman Sachs, the American multinational investment bank and financial services company, to start up a firm based on Bitcoin before the end of the current year.
Investors Expect Major Banks in the Crypto Space too early
In an interview with Bloomberg, the CEO of the software development & financial services company, who has been working with one of the top investment companies in VanEck in order to launch a Bitcoin exchange-traded fund (ETF) in the US securities markets, indicated that investors were anticipating the entry of top financial institutions in the US like Goldman Sachs and Morgan Stanley, among others, into the Bitcoin business. He said that they had hasty expectations for these financial institutions to create digital currency exchanges and provide Bitcoin custodial solutions.
There have been several buzzes about top banks in the US like Morgan Stanley, Citigroup, and others to delve into the Bitcoin space by the year’s end. The reality, however, is that these banks will most likely not get involved in a market that is relatively new and unregulated compared to other markets. Goldman Sachs has, however, has been getting set to include Bitcoin services in its features for quite a while now.
Goldman Sach’s new CEO, David Solomon, who was appointed to lead the company two months prior, confirmed the rumors flying around when he agreed that the bank has been clearing some Bitcoin futures for its clients to create a trading desk for digital currencies quite soon. David Solomon said that;
“We are clearing some futures around Bitcoin, talking about doing some other activities there, but it’s going very cautiously. We’re listening to our clients and trying to help our clients as they’re exploring those things too. Goldman Sachs must evolve its business and adapt to the environment.”
While Goldman Sachs has the option to clear Bitcoin futures with the aid of trusted futures markets in the US, they cannot hold onto investors’ digital currencies or invest their clients’ cryptocurrencies without getting custodian approval before doing so.
An executive of the bank, Justin Schmidt, has indicated that Goldman Sachs has not gotten approval from regulatory bodies and it could be perilous for the bank to engage in cryptocurrency services pending the bill relating to the legal definition of cryptocurrencies.
Top Banks Dipping into the Crypto Market
It has been presumed highly unlikely that Morgan Stanley, Citigroup, and other top traditional financial institutions will snappily delve into the Bitcoin space by starting up businesses offering Bitcoin services. It has, however, been speculated that these institutions talk about cryptocurrency to rack up validation from the public who will think that they are making provisions for their financial future.
However, some top financial institutions have made moves concerning the crypto space with Goldman Sachs backing the soon to be launched crypto exchange, Bakkt, and Fidelity Investments, the fourth largest asset manager in the world, introducing services for its clients to save their assets in Bitcoin.