When bitcoin prices soared, many financial institutions could not stop launching some products linked to them, including many leaders such as Goldman Sachs and Morgan Stanley.But with the fall of prices this year, Wall Street finally gave up its illusion and began to rethink the meaning of it.in
In the case of Goldman Sachs, the company tried to put itself at the forefront of digital assets. However, sources familiar with their business say that progress has been slow or almost imperceptible.
Chart for Bitcoin (via: Bloomberg)
Now many people in the industry are saying that it is unrealistic to convert last year's fanaticism into an encryption product on Wall Street.in
Daniel H. Gallancy, CEO of New York-based SolidX Partners said:
The market has unrealistic expectations for the bitcoin trading business that may suddenly start. Wanting to launch Bitcoin ETF in the US is pure market speculation.
Even so, Goldman Sachs still has high hopes, after all, the company is one of the first companies on Wall Street to liquidate bitcoin futures.
Last year, a person familiar with the matter said that Goldman Sachs is preparing to launch a trading platform. In addition to the hosting services of the custody fund, the company also invested in BitGo Holdings Inc., which aims to provide term derivatives without principal delivery.
However, according to people familiar with the matter, the bank has not yet offered encrypted transactions, and its NDF products are not very attractive – only 20 customers are registered.
Justin Schmidt, who was hired as head of the digital asset business, told a trade conference last month that regulators are limiting this. However, Goldman Sachs also plans to increase its digital asset experience in its main brokerage department.
Banks and investment firms are cautious about the fact that regulators provide little clear guidance on how to classify large amounts of chips (such as goods, bonds or other things).
In addition, criminal and regulatory investigations did not help. Even though the value of crypto assets has evaporated at $ 700 billion, believers still hold their assets firmly.
According to informed sources,Earlier this year, Morgan Stanley hired Andrew Peel as its digital asset manager and was ready for the technology.
Originally planned to offer special foreign exchange swaps from September, but so far has not successfully signed a single. Informed people said in September that once there is a confirmed institutional demand from customers, the business will soon be able to follow.
At the same time,Citigroup Inc. has not left any crypto-coins in its existing business regulatory system. London's Barclays Plc has almost returned to its original point.
Earlier this year, the British bank appointed two former oil traders (Chris Tyrer and Matthieu Jobbe) to explore the deal, but the two left in September and November respectively.
Both Citigroup and Morgan Stanley declined to comment on their respective cryptographic business conditions.in
Patrick Lenihan, a spokesman for Goldman Sachs in New York, said they will focus on "meeting customer needs carefully and safely."
It is worth mentioning that in August this year, Intercontinental Exchange Inc., the parent company of the New York Stock Exchange, reported that it has created a service for consumers and institutions to buy, sell, store and use digital assets.
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