“I really have to describe the news as fake news.”
That’s how Goldman Sachs CFO Martin Chavez labeled a report that the firm was shelving its Bitcoin trading desk. “I never thought I would hear myself use this term but I really have to describe that news as fake news,” Chavez said, according to CNBC.
“It wasn’t like we announced anything or that anything had changed for us.”
The news came hours after it was reported it had backed down on plans to start its dedicated cryptocurrency desk. By the time the news was clarified, most coins had been crushed in a bloodbath of selling.
In fact, Goldman isn’t abandoning anything, apparently
Instead, it’s choosing to focus on other products, most notably its custody product.
That means Goldman would hold the securities on behalf of the funds, which then cuts the risk for clients worried about potential loss. Should that happen, the bank could provide quite a boost to the number of funds betting on virtual currency.
The best part — Goldman wouldn’t be the only bank to enter the custody space.
Earlier this year, Nomura created a custody consortium called Komainu. Bloomberg also notes that Bank of New York Mellon Corporation, JP Morgan Chase, and Northern Trust are “working on cryptocustody services or exploring it.”
Bitcoin Derivates Product
It also has plans to create a Bitcoin derivatives product that functions similarly to the cash-settled cryptocurrency futures contract.
“The next stage of the exploration is what we call non-deliverable forwards, these are over the counter derivatives, they’re settled in U.S. dollars and the reference price is the bitcoin-U.S. dollar price established by a set of exchanges,” he said, as quoted by CCN.
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