Date
17 October 2017
Goldman Sachs is in talks with cryptocurrency experts but hasn’t yet formulated a business plan. Photo: Bloomberg
Goldman Sachs is in talks with cryptocurrency experts but hasn’t yet formulated a business plan. Photo: Bloomberg

Goldman Sachs exploring bitcoin trading venture

Goldman Sachs Group Inc. is considering launching a business to help clients trade bitcoin and other digital currencies, Bloomberg reports, citing an unnamed person briefed on the plan.

The New York-based bank is in talks with cryptocurrency experts but hasn’t yet formulated a business plan, a timetable for implementation or made any bitcoin-related investments, the report said.

“In response to client interest in digital currencies, we are exploring how best to serve them in the space,” Tiffany Galvin, a spokeswoman for the bank, said in a statement without elaborating.

Goldman Sachs’s view appears to differ from that of JPMorgan Chase & Co. chief executive Jamie Dimon, who said last month that bitcoin is a fraud and that he would fire any employee trading it for being “stupid”. The bank does facilitate trades of an exchange-traded note tied to the price of bitcoin.

Others have been more open to the cryptocurrency. Morgan Stanley CEO James Gorman said bitcoin is more than just a fad.

Former Goldman Sachs and Fortress Investment Group LLC trader Mike Novogratz is starting a US$500 million hedge fund to invest in cryptocurrencies, initial coin offerings and related companies, Bloomberg said, citing a source.

Goldman Sachs is further along with the blockchain technology that underlies bitcoin, and has invested in a startup, Axoni, that is working to bring distributed-ledger technology to financial firms, the report said.

The Wall Street Journal reported Goldman Sachs’s efforts earlier on Monday.

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CG

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