The New York banking and investment group Goldman Sachs set aside its cryptocurrency plans, claiming that the regulatory framework for cryptocurrencies remains unclear. The financial giant, declared last year that they are working on creating a cryptocurrency desk, but that the initiative labeled as a low priority.
According to Business Insider, Goldman Sachs would still be interested in participating in the crypto market, but for the time being, its focus is on other projects. Mainly a custodial service for cryptocurrencies. However, the bank did not rule out participating in the future in cryptocurrency operations.
An unnamed representative of the bank said they are still looking for the right formula to meet and protect the investors’ interests when it comes to crypto trading.
“In response to the interest that customers have on various digital products, we are exploring the best way to serve them in this space. At this time, we have not concluded the scope of our offer, “said the spokesman.
With this statement, the bank confirms that its clients have informed them that they wish to get involved in cryptocurrency trading.
In January, the bank denied reports regarding a crypto desk. At that time it was Lloyd Blankfein, CEO of Goldman Sachs, who stated that the company would have more openness to that type of investment as long as the clients demand them.
Last April Goldman Sachs hired an expert in cryptocurrency trading, named Justin Schmidt, as an advance to open a crypto trading desk.
Goldman Sachs has taken steps to approach the crypto ecosystem…
One of them was its participation in the financing round of Circle Internet Financial, an alliance them access to Circle’s portfolio, exchange platform, investment services and the application of mobile payments with fiat Circle Pay currency.
Another step had to do with by Poloniex’s acquisition by Circle. The purchase was signed after several negotiations and a payment of $400 million. Furthermore, the communication between Goldman Sachs and the crypto companies is kept through its strategic investment division; a branch that seeks to get involved with companies from the IT sector.
With the new events, Goldman Sachs continues to keep an eye on the crypto ecosystem and also work on the foundations of a healthy collaboration between traditional finance companies and fin-tech.