Goldman Sachs executed its first cryptocurrency transactions and formalized the establishment of its Bitcoin office on Friday, two months after the U.S. bank announced it would re-enter the nascent market.
In a memo sent to staff on Thursday, seen by the Financial Times, Rajesh Venkataramani, head of major currencies, informed staff that the bank had “successfully executed” transactions in two types of bitcoin-related derivatives.
The bank announced on March 1 that it would be relaunching its cryptocurrency trading desk silently due to growing demand from institutional clients. Goldman was one of the first banks to set up a crypto operation, but the creation of the office in 2018 coincided with the dramatic drop in bitcoin prices, which prompted the bank to quietly abandon the initial project.
The value of bitcoin, the largest cryptocurrency by volume, has risen 95% since the start of the year after a dramatic rally last year that saw it become one of the best performing financial assets in the world. world. Bitcoin was trading at $ 57,385 on Friday.
The relaunched Goldman trading desk will not deal in cash cryptocurrencies, but instead will trade undeliverable futures and forwards as part of the initially “narrow enough” push into the space, according to Mathew McDermott, chief of the digital assets team.
Initially, the bank will only allow its prime brokerage and private banking clients access to its trading team and cryptocurrency research.
Venkataramani will lead the cryptocurrency trading team while McDermott will oversee areas such as central bank digital currencies and blockchain. The new team is part of the bank’s activities in global currencies and emerging markets.
“I am pleased to announce the formation of the company’s cryptocurrency trading team, which will be our central office for managing cryptocurrency risk for our clients,” Venkataramani wrote in the memo sent Thursday. , which was first reported by CNBC.
The bank has also launched a cryptocurrency dashboard that allows customers to provide market data and information on bitcoin and alternatives. Due to regulatory concerns, banks cannot trade cryptocurrencies for cash and are limited to regulated markets such as Bitcoin futures on the Chicago Mercantile Exchange.
“Looking ahead, as we continue to expand our market presence, albeit in a measured manner, we are selectively integrating new liquidity providers to help us expand our offering,” added Venkataramani.
McDermott said in a podcast in early March that the bank had seen an increase in demand for cryptocurrency services since last year, noting that the current bitcoin rally was driven by professional clients rather than retail investors. .
Goldman is one of the few major US banks to have recently announced interim efforts to enter the booming crypto arena.
Goldman Sachs executed its first cryptocurrency transactions and formalized the establishment of its Bitcoin office on Friday, two months after the U.S. bank announced it would re-enter the nascent market.
In a memo sent to staff on Thursday, seen by the Financial Times, Rajesh Venkataramani, head of major currencies, informed staff that the bank had “successfully executed” transactions in two types of bitcoin-related derivatives.
The bank announced on March 1 that it would be relaunching its cryptocurrency trading desk silently due to growing demand from institutional clients. Goldman was one of the first banks to set up a crypto operation, but the creation of the office in 2018 coincided with the dramatic drop in bitcoin prices, which prompted the bank to quietly abandon the initial project.
The value of bitcoin, the largest cryptocurrency by volume, has risen 95% since the start of the year after a dramatic rally last year that saw it become one of the best performing financial assets in the world. world. Bitcoin was trading at $ 57,385 on Friday.
The relaunched Goldman trading desk will not deal in cash cryptocurrencies, but instead will trade undeliverable futures and forwards as part of the initially “narrow enough” push into the space, according to Mathew McDermott, chief of the digital assets team.
Initially, the bank will only allow its prime brokerage and private banking clients access to its trading team and cryptocurrency research.
Venkataramani will lead the cryptocurrency trading team while McDermott will oversee areas such as central bank digital currencies and blockchain. The new team is part of the bank’s activities in global currencies and emerging markets.
“I am pleased to announce the formation of the company’s cryptocurrency trading team, which will be our central office for managing cryptocurrency risk for our clients,” Venkataramani wrote in the memo sent Thursday. , which was first reported by CNBC.
The bank has also launched a cryptocurrency dashboard that allows customers to provide market data and information on bitcoin and alternatives. Due to regulatory concerns, banks cannot trade cryptocurrencies for cash and are limited to regulated markets such as Bitcoin futures on the Chicago Mercantile Exchange.
“Looking ahead, as we continue to expand our market presence, albeit in a measured manner, we are selectively integrating new liquidity providers to help us expand our offering,” added Venkataramani.
McDermott said in a podcast in early March that the bank had seen an increase in demand for cryptocurrency services since last year, noting that the current bitcoin rally was driven by professional clients rather than retail investors. .
Goldman is one of the few major US banks to have recently announced interim efforts to enter the booming crypto arena.
