Goldman Sachs CFO Refutes Bank Is Abandoning Its Crypto Trading Desk During Conference
Goldman Sachs CFO Chavez denies the report by Business Insider that the firm was abandoning its plans to launch a crypto trading desk during a TechCrunch Disrupt conference in California.
Goldman Sachs’ Chief Financial Officer (CFO), R. Martin Chavez has clarified that the investment bank has not abandoned its plans to open a cryptocurrency trading desk.
The executive stated that the report by Business Insider about the firm backing out of its crypto trading desk was ‘fake news’.
Business Insider ran a story which cited sources close to the bank stating that Goldman Sachs has canceled its plans to launch a cryptocurrency desk.
Chavez has now stated that the reports were false and the firm is still on track to venture into the cryptocurrency world.
Goldman Sachs working on bitcoin derivative for clients
After clearing the air regarding the false report, Chavez added that the firm is now working on a bitcoin derivative dubbed non-deliverable forwards. He made this statement during a TechCrunch Disrupt Conference in San Francisco.
Explaining the non-derivable forwards, he stated that they 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.
Talking about physical Bitcoin, Chavez pointed out that there has to be a safe custody solution before Goldman Sachs can consider moving forward. He added that physical Bitcoin is something tremendously interesting, and tremendously challenging.
The firm hasn’t seen in institutional-grade custodial solution for bitcoin and the firm is interested in having one exists, though it is something they are planning long-term.
Chavez puts the FUD to rest
Even though the CFO talked about the company’s proposed Bitcoin derivative, the cryptocurrency space has been focused on the news that the investment bank has not abandoned its plans to set up a cryptocurrency trading desk.
Back in October 2017, the bank’s outgoing CEO Lloyd Blankfein revealed that the company was still looking into Bitcoin, adding that they are neither endorsing nor rejecting.
The firm’s spokeswoman followed that up by revealing that the bank’s clients were interested in cryptocurrencies and they are looking at the best ways to serve their customers.
In December last year, reports surfaced that revealed that Goldman Sachs, which was already clearing Bitcoin futures launched by CBOE and CME that month, was planning to set up a crypto trading desk
Chavez in his speech noted that Goldman Sachs exploring digital assets is something that would continue to evolve over time. He added that maybe someone got very excited about the bank’s activities but nothing has been concluded yet.
When asked if there is a timeline for the bank to trade physical Bitcoin, Chavez did not have a timeline.
The news that the bank is ditching its plans to launch a cryptocurrency trading desk led to the cryptocurrency market recording massive losses. Bitcoin dropped by nearly $1,000 within 24 hours but has since then stabilized.
He was finally asked if he owned any bitcoin, and he replied affirmatively. He added that a friend sent him five BTC back in 2013 and he is still in possession of them.