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Banks on the Crypto Track: What Would It Give to the Industry?

Goldman Sachs Group is going to reset its crypto trading desk in March

Goldman Sachs Group is going to reset its crypto trading desk in March. The multinational investment bank and financial services company closed its crypto trading desk and all activities connected to crypto back in 2018.

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The Goldman Sachs Group (NYSE:GS) is perhaps the world’s most significant investment bank by revenue and a crucial market maker for US Treasury securities.

Goldman Sachs Into Crypto Track Again

Goldman Sachs is expected to restart trading of crypto futures and Non-Deliverable Forwards (NDF). The Wall Street behemoth also thinks about the opportunity to reopen its Bitcoin exchange-traded fund and provide crypto custody.

In fact, Goldman Sachs was one of the first solid banks eager to process crypto trading back in 2018, as long as the majority of traditional financial institutions were suspicious about crypto.

Nevertheless, it didn’t realize its intention later that year because of the unclear crypto regulatory framework. Bank management said that many factors were supposed to be taken under consideration in order to allow traditional financial institutions to begin operating digital currencies.

Why now?

Store of value

Crypto assets have gradually proven to be a new asset class and investment option for institutional clients as for the past year.

The COVID-19 pandemic endangered the economies in 2020. Central banks reduced interest rates; governments encouraged stimulus measures that ended up with soaring inflation.

Traditional Wall Street concluded that preserving large amounts of fiat becomes dangerous and may cause harm. Therefore, big traditional institutions were prompted to check out alternative investment options that would be profitable. Thus, gradually, traditional financial institutions and companies broadened their portfolios with crypto assets that became a store of value.

More so, private tech giants, such as Tesla (NASDAQ:TSLA) and MicroStrategy put billions of dollars into Bitcoin, followed by thousands of other companies with their millions.

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