Goldman Sachs multinational investment bank has once again set up a cryptocurrency trading desk. This move is coming at a time when staggering growth in the value of Bitcoin and several other cryptocurrencies has moved key financial players in the world to soften their attitudes towards crypto. Back in 2018, the backed away from trading crypto currency after Bitcoin crashed nearly 70% in 2018.
The bank’s cryptocurrency trading operation is set to begin dealing bitcoin futures for clients later this month, and the unit will also trade non-deliverable forwards; a type of financial contract that allows investors to speculate on an asset’s future price, common in foreign exchange and commodities markets. Goldman Sachs’ relaunched desk will be part of the US Global Markets division.
The relaunch of the cryptocurrency trading desk is part of the bank’s efforts to keep up with the rapidly evolving digital assets sector. This includes blockchain technology and central bank digital currencies.
‘Bitcoin’ and ‘Crypto’ are among the most searched trends currently. Cryptocurrency has become so popular and this is not much of a surprise as the value of the world’s largest cryptocurrency, Bitcoin, has surged incredibly. Bitcoin gained approximately 300% during 2020, and another 70% in January and February of 2021. Bitcoin’s value surged above the $58,000 level and smashed above the $1 trillion market capitalization, in February, before giving up gains. The price of a bitcoin as at March 4, 2021, is $49,606.
Cryptocurrency still remains erratic and some individuals, as well as institutions and organizations, still remain skeptical. But Goldman Sachs’ upcoming relaunch of its cryptocurrency trading desk suggests it has taken its side with the bulls. Large companies like MasterCard and Tesla have already embraced Bitcoin. Many perceive crypto as a potential form of mainstream payment in the future.
Cryptocurrency has become a global phenomenon in recent years. Supporters of Bitcoin and other cryptocurrencies claim that these financial platforms are inherently less trustworthy systems. While others say that there are risks, supporters are confident that cryptocurrency has a stable role in our future. The Banking powerhouse, Goldman Sachs, is the latest key institutional player to invest in cryptocurrencies in the middle of a staggering increase in their values.