A senior executive at Goldman Sachs claims a Business Insider report that it is backing away from a cryptocurrency trading desk is “fake news.” The original story spooked the market and resulted in a near $1,000 per coin drop in bitcoin while hammering other altcoins.
The effect immediately stopped the bleeding in the market. As of early morning, bitcoin stabilized at the $6,400 level.
“When we talked about exploring digital assets that it was going to be exploration that would be evolving over time,” said Goldman Sachs chief financial officer Martin Chavez, speaking onstage at the TechCrunch Disrupt Conference in San Francisco.
“Maybe someone who was thinking about our activities here got very excited that we would be making markets as principals in physical bitcoin, and as they got into it, they realized that is part of the evolution. But it’s not here yet.”
The Business Insider story blamed regulatory uncertainty for the alleged Goldman pullback. The fact that one of Wall Street’s major players and biggest bitcoin advocates in a sea of nay-sayers was changing course panicked investors.
The report indicated Goldman was focusing on a custody product for cryptocurrencies. Chavez addressed that rumor
“From the perspective of custody, we don’t yet see an institutional-grade custodial solution for Bitcoin,” Chavez said. “We’re interested in having that exist and it’s a long road.”
Chavez added that Goldman was trying to develop over-the-counter derivatives for Bitcoin. “They’re settled in U.S. dollars and the reference price is the bitcoin-U.S. dollar price established by a set of exchanges,” he said.
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