April 23, 2018 - CNBC
It appears one of the worlds largest investment banking companies, Goldman Sachs, is making big moves in the realm of cryptocurrency. Beginning his role on Monday, April 16th, Justin Schmidt, a former trader, will be the first to head the digital assets market in the company's security division.
"In response to client interest in various digital products, we are exploring how best to serve them in the space, " Goldman Sachs spokeswoman Tiffany Galvin-Cohen said in this statement. These peaking of interests from clients interested in entering the crypto market will now have a venue laid by Goldman Sachs investor relations.
Justin Schmidt was previously the senior vice president at quantitative trading firm Seven Eight Capital, and a trader at a proprietary firm, among other roles, according to his LinkedIn profile.
Rumours about Goldman's strategy for crypto-related offerings have circulated since December after Bloomberg reported the bank is planning the launch of a crypto trading desk. Many dedicated media crypto outlets have tried to debunk the story but it appears Goldman Sach's has indeed been pushing into this emerging market.
As history follows, Goldman, the bank with a reputation for being one step ahead of its peers is putting money and resources behind someone who is dedicated to explore "the range of options" cryptocurrency offers.
"The job of a bank's trading desks is to help their clients trade the financial stuff they want to trade. . . If the sorts of customers who are banks' customers want to trade a thing, then that thing becomes a financial thing, and so the banks had better start helping them trade it", Matt Levine wrote last week.
This is a huge step for big banks and cryptocurrency, it's more likely now that banks will begin touting the ability to give clients access to crypto trading, without having to deal contracts themselves.