Goldman Sachs plans to build Wall Streets first bitcoin trading business

category:Internet
 Goldman Sachs plans to build Wall Streets first bitcoin trading business


Most large banks are trying to keep away from scandalous digital currency bitcoins. But Goldman Sachs, the most legendary Goldman Sachs in the financial world, is taking huge risks to plan to build the first bitcoin trading business in Wall Street. This may give some legitimacy to digital money, and it will also bring new risks to Goldman Sachs. It is reported that Goldman Sachs will soon use its own funds to deal with all kinds of contracts linked to bitcoin prices with customers. Although Goldman initially did not buy and sell bitcoins, a team of the company was heading in this direction. Of course, the premise is that Goldman can get regulatory approval and find out how to deal with additional risks associated with digital money. Rana Jarid, a Goldman Sachs executive in charge of related transactions, said RanaYared is very clear about what he is doing. Yali said: I will not describe myself as a believer who believes that bitcoin will occupy the whole world. Almost all those involved in the project are more or less skeptical. (Illustrations: Justin Schmidt (JustinSchmidt) and vice president of strategic investment (MariannaLopert-Schaye), who will be in charge of GoldmanSachss bitcoin business, and Naima Rafael (NeemaRaphael), leading research and development. Even so, if a few years back, even as the most proud and most controversial bank in Wall Street, Goldmans moves to deal with the bitcoin will be considered absurd. At that time bitcoin was considered to be a way of trading drugs online. In 2009, a mystery man named Zhong Ben cong created bitcoin, which believed that bitcoin would replace Wall Street bank rather than bring new benefits to them. However, over the past two years, more and more global hedge funds and other large investors have expressed interest in digital currency. Technology companies like Square have begun to offer bitcoin services to their customers, and the Chicago commodity exchange launched a bitcoin futures contract in December last year. So far, regulated financial institutions are still far away from bitcoin, and some have even closed the accounts of bitcoin transactions. JamieDimon, chief executive of JPMorganChase (JPMorganChase), referred to bitcoin as a fraud, and many other banks chief executives said the price of bitcoin was just a speculative bubble. Yali pointed out that Goldman Sachs believes that bitcoin is not a fraud, but it does not have monetary characteristics. But considering that a limited number of bitcoins can be mined in a complex virtual system, the property is similar to gold, and some customers want to hold it as a valuable commodity. Its not a new risk were not aware of, its just a high risk we need to pay extra attention to, said the Goldman executive, who is in charge of the business. She said, when customers say, I want to hold bitcoin or bitcoin futures, because this is a way of keeping value, this will resonate with us. Goldman said Goldman had received related inquiries from hedge funds, and some endowment funds received digital money donated by the billionaires but did not know how to deal with it. Goldmans board finally approved the deal for bitcoin contracts. There is a lot of uncertainty in Goldmans move. The price of bitcoin is mainly determined by the volume of transactions that are not regulated by the state, and the countries in which these institutions are located do not have any regulatory measures to prevent the market from being manipulated. Since the beginning of this year, the price of bitcoin has been rising and falling due to uncertainty in how to handle digital money by regulators. This is not a new risk we are not aware of, Yali said. This is just a high risk we need to pay extra attention to. Goldmans moves in this field have surpassed most of the banks and are now trading accounts for customers who want to buy and sell bitcoin futures contracts on the Chicago commodity exchange and the Chicago options exchange. In the next few weeks, the exact date has not yet been determined - Goldman will start using its own funds to represent its clients in trading bitcoin futures contracts. In addition, Goldman will provide its own bitcoin futures contracts to its customers. The banks first digital asset dealer Justin Schmidt (JustinSchmidt) joined Goldman Sachs two weeks ago to deal with the daily business of the bitcoin futures contract. Schmidt, 38, was an electronic trader of hedge fund SevenEightCapital. In 2017, Schmidt resigned to start trading digital currencies. Yali said he would initially be placed in the foreign exchange service counters of Goldman Sachs, because bitcoin trading is most similar to the fluctuations in emerging market currencies. If Goldman can get regulatory approval from the Federal Reserve and the New York authorities, Schmidt is considering trading the actual bitcoin. The company must also find a way to let customers feel secure in holding bitcoins instead of being stolen by hackers. Schmidt and Yali said that the current bitcoin scheme for customers has not yet reached the Wall Street standard. Goldman Sachs is known for promoting derivatives trading in complex products. After the financial crisis, the company made a lot of money in so-called synthetic derivatives trading in the subprime mortgage market. Since the financial crisis, Goldman Sachs has positioned itself as the most powerful financial company in Wall Street. In addition, the company has launched an online lending service called Marcus (Marcus), which will allow the company to connect with retail customers for the first time. Goldmans digital currency deals, however, are for large institutional investors only. Schmidt said that despite the many opportunities in the digital world, Goldmans shrewd sophistication is still the main reason why he chose this job. Compared to a trusted institutional colleague, I have been looking for my digital money transaction - but it does not exist, he said. (Han Bing) source: NetEase science and technology report editor: Bai Xin _NT4464 Goldman Sachs is known for promoting derivatives trading in complex products. After the financial crisis, the company made a lot of money in so-called synthetic derivatives trading in the subprime mortgage market. Since the financial crisis, Goldman Sachs has positioned itself as the most powerful financial company in Wall Street. In addition, the company has launched an online lending service called Marcus (Marcus), which will allow the company to connect with retail customers for the first time. Goldmans digital currency deals, however, are for large institutional investors only. Schmidt said that despite the many opportunities in the digital world, Goldmans shrewd sophistication is still the main reason why he chose this job. Compared to a trusted institutional colleague, I have been looking for my digital money transaction - but it does not exist, he said. (Han ice)