According to multiple reports back in October and December of last year, it was said that the financial institution Goldman Sachs had plans to create a bitcoin trading desk. Now a month later, Lloyd Blankfein, the CEO of the firm, says the reports are “not true” speaking at the World Economic Forum in Davos this past Wednesday.
Goldman Sachs CEO Denies Opening a Bitcoin Trading Desk
A while back in October, publications started rumors that the banking institution Goldman Sachs was planning to launch a cryptocurrency trading desk. Further, the story was bolstered even more so in December when the financial news outlet Bloomberg said Goldman would start the trading platform this coming June. According to those reports which cited sources “familiar with the matter” Goldman was “still trying to work out security issues as well as how it would hold, or custody, the assets.”
Moving forward to the 2018 World Economic Forum event held in Davos, Lloyd Blankfein explained to the press that the brokerage firm was not planning to open a digital asset trading desk and earlier reports were false.
“What we said was we were opening — We’re clearing futures in bitcoins for some of our futures clients — We’d clear them,” explains Blankfein.
We’re a prime broker and so if our clients are going to do it, we’re going to do it — A principle bitcoin business where we’re going long and short, market making, so far we’re not.
‘Mad Money’ Host Says Investors Should Read Between the Lines of Lloyd Blankfein’s Bitcoin Statements
The host of the television broadcast, “Mad Money,” Jim Cramer believes that Blankfein’s statements did not completely dismiss bitcoin. Cramer explains on his recent show that “investors should read between the lines on Lloyd Blankfein’s bitcoin comments.”
“I think it was important to parse what Lloyd said,” Cramer reflects on the show. “[Blankfein] said customers who want to be involved with bitcoin we will do business with on some level.”
And he did say, ‘If clients want to do something in the futures with crypto, they are there for them.’
Bitcoin’s Rise Is Becoming ‘Uncomfortable’ for Financial Incumbents as the Boss of JP Morgan Says the Media ‘Should Go Back to Something Relevant’
Lloyd Blankfein has been asked about bitcoin many times in the past but even more so recently during the cryptocurrency’s meteoric rise in value. Blankfein has stated before that he’s uncomfortable with bitcoin and believes the market might be overheated. In an interview with Kayla Tausche, Blankfein said: “Maybe bitcoin is a kind of a bubble — I don’t like it — I’m not comfortable with it.” Blankfein’s comments in Davos suggested that Goldman Sachs is willing to deal with digital currency investors.
The mainstream media has been very interested in what CEOs of large financial firms like Goldman Sachs and JP Morgan have to say about this emerging technology. Following the interview with Lloyd Blankfein, the CEO of JP Morgan Jamie Dimonwas also inundated by the press in Davos and asked to answer questions about bitcoin. Dimon who called bitcoin a “fraud” last year has been very vocal against the cryptocurrency.
“I’m not going to say any more about the digital currency,” Dimon explains this past Wednesday in Davos. Dimon clearly unimpressed with the media concludes:
The media should go back to something relevant.
What do you think about Goldman Sach saying they are not launching a trading desk one month after publications reported on the story? Do you think the company really is interested in bitcoin and cryptocurrencies? Let us know what you think in the comments below.
Images via Goldman Sachs Tower, Logo, and Lloyd Blankfein at WEF.
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