Goldman Sachs Exploring Cryptocurrency Trading Division

Announcements, FinTech, Innovation, Investing, News | October 2, 2017 By:

Goldman Sachs Group is considering adding a digital currency trading operation to its divisions, according to the Wall Street Journal (WSJ). If implemented, it would be the first giant of Wall Street to deal directly with crypto.

The decision is in early stages and may not happen, according to the WSJ. The announcement comes as financial multinationals struggle with the concept behind a decentralized currency that can’t be controlled. JPMorgan Chase CEO Jamie Dimon has been outspoken in his negative assessments, while others – notably Morgan Stanley CEO James Gorman – have been more accepting of what was once perceived as an outlaw money-laundering tool.

The WSJ quoted a Goldman spokeswoman: “In response to client interest in digital currencies, we are exploring how best to serve them in this space.”

If implemented, Goldman would likely focus its new division on institutional investors. Any new venture would involve its currency-trading division and strategic investment group. The WSJ said that indicates the firm believes digital currency’s future is tied more to payments than as a value store.

Goldman has struggled lately, with revenue from its fixed-income division falling 21 percent last year. Still, the firm has shown a willingness to innovate. They started a retail money-lending operation this year in an effort to create new revenue streams. The interest in digital currencies may be another such venture.