In recent times, Bitcoin has gained massive popularity after it went on an impressive price run, gaining over 50% and reaching an all-time high of $58,330 in February.
John Waldron, COO of Goldman Sachs, said the firm is looking for ways to meet the increasing demand for Bitcoin by its customers without breaking any existing legislation. He also said that the firm is considering floating a bitcoin-exchange traded fund.
Huge Demand For Bitcoin
The bullish trend of cryptocurrencies in 2021 saw the market capitalization of the entire industry reach $1.72 trillion, according to data from CoinMarketCap.
Bitcoin profited from the general bullish run to reach its all-time high of over $58,000 and was supported by institutional investors and an avalanche of retail investors, who were largely influenced by the fear of missing out.
Goldman Sachs COO, John Waldron, said, “Demand is rising,” and the firm is actively looking for ways to satisfy the growing need for Bitcoin.
John Waldron, who also doubles as the firm’s president, noted that the growth of cryptocurrencies is directly tied to the pandemic and we’re bound to see an increase in the use of digital currencies. “There is no question in our mind there will be more digital commerce … and [use of] digital money,” he said.
This comes on the back of the firm looking to launch its trading desk to support futures trading after abandoning all such plans three years ago due to regulatory concerns. The trading desk could see the creation of a Bitcoin exchange-traded fund that will provide convenience and diversity to the bank’s customers.
Meanwhile, Goldman Sachs has issued a request for information to explore digital asset custody in a move that points to concerted efforts to embrace cryptocurrency.
Waldron noted that the multinational investment bank will be in constant communication with regulators to figure out how to provide cryptocurrency services to its customers and satisfy demand without running afoul of existing rules.
On the Flipside
Wall Street Shows A Keen Interest
In January, Goldman Sachs put in a request for information (RFI) to explore digital asset custody. Then in February, banking powerhouse BNY Mellon (NYSE:BK) announced it was offering custodial services for cryptocurrencies.
JPMorgan Chase (NYSE:JPM) published a report warning that traditional financial companies are at risk of falling behind in digital finance, and even went as far as creating a new arm, called Onyx, which employs a hundred people to oversee its digital currency operations.
According to Takis Georgakopoulos, global head of wholesale payments at JPMorgan Chase:
We are launching Onyx because we believe we are shifting to a period of commercialization of those technologies, moving from research and development to something that can become a real business.
Aside from banks, payment gateways like Mastercard (NYSE:MA), Square, and PayPal are all striving to meet their clients’ demands and provide them with a seamless cryptocurrency experience.
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