Goldman Sachs CFO: Recent Reports About Crypto Trading Desk Are ‘Fake News’

Goldman Sachs Chief Financial Officer (CFO) Martin Chavez said that recent reports about the company abandoning its plans to open a cryptocurrency trading desk are “fake news,” CNBC reported. At the TechCrunch Disrupt Conference in San Francisco, Chavez reportedly said that reports about the company’s intentions for a crypto trading desk were unfounded:

"I never thought I would hear myself use this term but I really have to describe that news as fake news."

Rumors that Goldman Sachs planned to establish a crypto-focused unit by the end of 2018 were initially reported by Bloomberg in December last year. However, on September 5, Business Insider reported that unnamed sources said the firm is scrapping crypto trading desk plans due to an unclear regulatory environment in the crypto industry. Chavez suggested that the excitement over a potential trading desk may have been premature.

While Goldman has been clearing and providing liquidity for Bitcoin-linked futures contracts from the CBOE and CME, Chavez said there needs to be a reliable custody solution before the bank can proceed with physical Bitcoin (BTC).

The price of Bitcoin and other digital currencies plummeted following the news about Goldman Sachs cancelling plans for a trading desk, with total market cap dropping by $12 billion in an hour. All of the top 100 coins experienced losses over the last 24 hours. BTC is trading around $6,479, having lost more than 6 percent on the day. At press time, total market capitalization is around $206 billion, according to Coinmarketcap.

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#Goldman Sachs, #cryptocurrencies