This news comes as no surprise. We’ve known for a while David M. Solomon would be taking over the reigns of the investment bank. With Loyd C. Blankesfield retiring, Goldman Sachs is ready to move towards a brighter future — for cryptocurrencies, at least.
Solomon is a Well-Known Enthusiast of Cryptocurrencies
The bank’s President expressed his wish to understand Bitcoin and how his firm can help them navigate that world. It’s his intent to keep investing and further develop cryptocurrency-related products.
Blankesfield Made Sure Goldman Approached Bitcoin With Caution
Even though Blankesfield seemed cautious at first, Goldman Sachs decided to brave on and explore the crypto world. In an interview, he said Bitcoin would have to stabilize and stop its 20 percent jumps in a day before Goldman would consider it.
“Something that moves up and down 20 percent in a day doesn’t feel like a currency, doesn’t feel like a store of value. If it works out — and it gets more established, and it trades more like a store of value, and it doesn’t move up and down 20 percent, and there is liquidity to it — we’ll get to it.” Blankfein stated in an interview on Bloomberg Television.
Still thinking about #Bitcoin. No conclusion – not endorsing/rejecting. Know that folks also were skeptical when paper money displaced gold.
— Lloyd Blankfein (@lloydblankfein) October 3, 2017
Earlier this year, the financial services company made its first crypto hiring. Justin Schmidt, a former crypto trader, was hired as Vice President and Head of Digital Assets.
At the time, a spokeswoman named Tiffany Galvin-Cohen said the move came as a way to meet client demands. As client’s interest in cryptocurrencies increased, the bank felt it appropriate to appoint an expert to study how to meet those demands best.
Goldman Sachs Hopes to Have a Working Platform Next Year
In December 2017, Goldman became one of the first banks offering Bitcoin Futures contracts on CME Group Exchanges and Cboe Global Markets. Rumors started swirling around the same time saying the investment bank would establish a platform to trade cryptocurrencies.
On May 2, The New York Times (NYT) reported Goldman Sachs would be opening a Bitcoin trading operation. Rana Yared is one of the executives at the helm of the operation. Speaking to NYT, Yared made clear all people involved had a clear understanding of what Bitcoin was and approached it with caution.
“It resonates with us when a client says, ‘I want to hold Bitcoin or Bitcoin futures because I think it is an alternate store of value,’” Yared said. “It is not a new risk that we don’t understand. It is just a heightened risk that we need to be extra aware of here.”