Goldman Sachs Creates a Cryptocurrency Markets Unit


Goldman Sachs has enlisted a former trader to head a digital assets unit as the company prepares to enter the cryptocurrency market. The new hire Justin Schmidt started his role on April 6 under the Securities division.

He now becomes the VP and head of the digital assets markets. It is one of the surest signs yet the firm is finding ways to give its customers exposure to cryptocurrencies.

Goldman Sachs

“In response to client interest in various digital products, we are exploring how best to serve them in the space,” Tiffany Galvin-Cohen, a spokeswoman for the company said.

However, she noted that the firm had “not reached a conclusion on the scope of our digital asset offering.”

Justin Schmidt is a former vice president at Eight Digital, a quantitative trading firm. His LinkedIn profile also shows he has been a quant trader.

Crypto Trading Desk

Bloomberg has previously reported that the bank was planning to set up a crypto trading desk. Goldman Sachs has however consistently denied the reports.

Goldman Sachs has invested in Circle, a major liquidity provider of digital assets and cryptocurrency in the world. The platform recently raised its minimum bitcoin ticket price from $250,000 to $500,000. Circle characterises the market as robust despite a sustained decline in recent months.

Clearing Services

Goldman Sachs currently offers cryptocurrency exposure to its customers through the CBOE and CME bitcoin futures launched in late 2017. Its role is however limited to offering clearing services rather than being a market marker. It can therefore only place orders for crypto on exchanges on behalf of its customers.

Regulatory uncertainty remains a major hurdle for institutions seeking to enter the market. The Securities and Exchange Commission is yet to clearly spell out how it plans to regulate the sector. It has however given indications that cryptocurrencies will be treated as securities.

More financial institution are expected to make their way as regulations become more clear.

Leave a Reply

Notify of

Risk Warning: Investing in digital currencies, stocks, shares and other securities, commodities, currencies and other derivative investment products (e.g. contracts for difference (“CFDs”) is speculative and carries a high level of risk. Each investment is unique and involves unique risks.

CFDs and other derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how an investment works and whether you can afford to take the high risk of losing your money.

Cryptocurrencies can fluctuate widely in prices and are, therefore, not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Past performance does not guarantee future results. Any trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Your capital is at risk.

When trading in stocks your capital is at risk.

Past performance is not an indication of future results. Trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Prices may go down as well as up, prices can fluctuate widely, you may be exposed to currency exchange rate fluctuations and you may lose all of or more than the amount you invest. Investing is not suitable for everyone; ensure that you have fully understood the risks and legalities involved. If you are unsure, seek independent financial, legal, tax and/or accounting advice. This website does not provide investment, financial, legal, tax or accounting advice. Some links are affiliate links. For more information please read our full risk warning and disclaimer.