Goldman Sachs eyeing crypto market-making for Bitcoin, Ethereum if US regulations shift

 Goldman Sachs CEO David Solomon said the steadfast mightiness research becoming a spot marketplace shaper spot marketplace for Bitcoin (BTC) and Ethereum (ETH) if the regulatory situation successful the US undergoes important changes.

Speaking astatine the Reuters Next lawsuit successful New York, Solomon acknowledged that Goldman Sachs is presently incapable to clasp crypto owed to existing regulations. He described crypto arsenic an “interesting technology” and noted the increasing attraction it is receiving arsenic investors expect shifts successful the regulatory framework.

Despite the firm’s ongoing efforts to assistance clients successful navigating the crypto space, Solomon expressed uncertainty astir the aboriginal absorption of U.S. regulatory policies governing integer assets.

No reputational risks

Goldman Sachs’ CEO was questioned astir the reputational risks astir crypto, stemming from large scandals similar FTX’s illness successful 2022. He replied:

“I don’t correlate Sam Bankman-Fried [FTX erstwhile CEO] with integer assets. There are plentifulness of radical who perpetrate transgression actions with respect to fiat currency and that doesn’t make a reputational hazard astir fiat currency.”

Solomon pointed retired that Goldman Sachs turns its reputational lenses toward their concern partners, not Bitcoin.

From a regulatory perspective, Goldman Sachs is constricted to interacting with crypto arsenic a regulated fiscal institution, but individuals and businesses that judge successful these assets arsenic a store of worth and speculative plus person the close to enactment successful the crypto market, and Solomon “certainly encourages” that.

Diving into blockchain

Despite not offering spot products related to BTC and ETH, Goldman Sachs is diving deeper into blockchain technology. On Nov. 18, the company announced a spin-off level focused solely connected blockchain solutions.

The Wall Street elephantine said it launched the programme successful collaboration with “strategic manufacture partners,” but did not uncover further details astatine the time.

Mathew McDermott, planetary caput of integer assets astatine Goldman Sachs, precocious revealed that the institution is preparing to motorboat 3 tokenization products for immoderate of its cardinal organization clients.

Tokenization involves creating a integer practice of a real-world plus connected the blockchain. McDermott stated this presents a captious accidental for the slope owed to rising lawsuit request for specified products.

In summation to its blockchain-related initiatives, Goldman Sachs reported owning astir $718 cardinal worthy of Bitcoin done spot exchange-traded funds (ETF) successful its latest 13-F Form filing with the US Securities and Exchange Commission (SEC).

The station Goldman Sachs eyeing crypto market-making for Bitcoin, Ethereum if US regulations shift appeared archetypal connected CryptoSlate.