More

    [FAKE News Update] Goldman Sachs is STILL Working on Crypto Products, Despite Earlier Reports This Week

    Goldman Sachs is Still Working on Crypto Products, Despite “Fake News” from Earlier This Week

    Yesterday, it was reported that Goldman Sachs was shutting down its crypto platform after a disappointing start to the year for crypto markets. Earlier today, Goldman Sachs called that report “fake news” and insisted that its still working on releasing crypto investment products in the future.

    It’s been a wild 24 hours for the crypto industry. Yesterday, rumors appeared online that Goldman Sachs had canceled its crypto division. That crypto division had been reported earlier this year, signaling that one of Wall Street’s biggest names was preparing to enter the crypto space. Prices surged the day the news broke.

    Then, earlier this week, reports appeared online that Goldman Sachs was no longer preparing to launch crypto products. Markets plummeted.

    Now we enter today, where Goldman Sachs has insisted that it continues to develop its crypto product.

    As reported by CNBC, Goldman Sachs Chief Financial Officer Martin Chavez is calling the report “fake news”. Chavez claims the bank is continuing to work on a bitcoin derivative known as a “non-deliverable forward.”

    In other words, Goldman Sachs isn’t exiting the crypto space anytime soon. In fact, they’re preparing to enter the space in a big way.

    Goldman Sachs decided to push forward with the project after continued demand from clients.

    “I never thought I would hear myself use this term but I really have to describe that news as fake news,” Chavez told the crowd at TechCrunch Disrupt in San Francisco earlier today, as reported by CNBC. The CFO added that “clients want it” – they want a bitcoin-related investment product from a trusted institution. Chavez explained:

    “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.”

    The “fake news” appeared in Business Insider earlier this week. Over the past year, it’s been rumored that Goldman Sachs is developing some type of crypto-related product or platform, but it wasn’t clear what, exactly, they were creating.

    Chavez is now totally denying the report that Goldman Sachs is shutting down its crypto product development. However, Chavez insists that there’s no timeline for the launch of the product.

    In other words, when it was reported that Goldman Sachs was “exploring” the idea of launching crypto products, it meant exactly that: Goldman Sachs was exploring the idea of launching a crypto product but they weren’t ready to release that product anytime soon.

    “When we talked about exploring digital assets that it was going to be exploration that would be evolving over time,” Chavez said.

    “Maybe someone who was thinking about our activities here got very excited that we would be making markets as principal and physical bitcoin, and as they got into it they realized part of the evolution but its not here yet.”

    Of course, Goldman Sachs is already dealing with bitcoin in a roundabout way. The bank has been clearing bitcoin-linked futures contracts offered by the Cboe and CME since May 2018. Goldman Sachs is also providing liquidity for those futures contracts for clients.

    Nevertheless, Goldman Sachs does not yet own any physical bitcoin.

    “Physical bitcoin is something tremendously interesting, and tremendously challenging,” Goldman Sachs CFO Chavez said.

    “From the perspective of custody, we don't yet see an institutional-grade custodial solution for bitcoin, we're interested in having that exist and it's a long road.”

    One of the biggest barriers to institutional participation in bitcoin, so far, has been the lack of an institutional-grade custody solution. Institutions are interested in buying bitcoin for clients, but they’re wary of holding bitcoin outside of institutional-grade custody solutions.

    Ultimately, the fact that Goldman Sachs continues to be involved with bitcoin is a good thing for enhancing the legitimacy of the crypto industry. It seems rumors of Goldman Sachs’s exit from bitcoin have been greatly exaggerated.

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Avatar
    Bitcoin Exchange Guide News Team
    B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    3,353FansLike
    2,773FollowersFollow
    4,130FollowersFollow

    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    Crypto Community Sentiment Still Bullish Despite BTC Trading 40% Lower Than Yearly High

    Bitcoin proponents had a lot of expectations from 2020, given the impending Block Reward Halving and the expected bull run. The year started as...

    Modern Monetary Theory (MMT) vs BTC to be the Main Event of 2020

    The biggest global emergency of the century, COVID-19 pandemic has the Treasury officials trying to decide on how much they can spend to fight...

    This Crisis Is A ‘Perfect Storm' For Bitcoin But We Could Be In For A ‘Prolonged Bear Market'

    Bitcoin is back in the green, recording the gains of 3.14% in the past 24 hours while volume on the top ten exchanges with...

    Banking Giant Santander to Bring One Pay FX Payment System to Mexico Utilizing RippleNet

    In 2020, the major Spain-based bank Santander is planning to roll out the One Pay FX program, its Ripple powered system for international payments,...

    Bitcoin Bull Market Won’t be Happening Immediately After the Halving: Bitmain CEO

    Bitcoin is currently trading above $6,300, still down over 14% on a year-to-date basis but up more than 60% from the 2020 low of...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.