Goldman Sachs CEO David Solomon said the company may consider becoming a spot market maker for Bitcoin (BTC) and Ethereum (ETH) if the regulatory environment in the United States undergoes significant changes.
Speaking at Following At an event in New York, Solomon acknowledged that Goldman Sachs is currently unable to hold cryptocurrencies due to current regulations. He described crypto as an “interesting technology” and highlighted the growing attention it is receiving as investors anticipate changes in the regulatory framework.
Despite the company’s continued efforts to help its clients navigate the crypto space, Solomon expressed uncertainty about the future direction of U.S. regulatory policies governing digital assets.
No reputational risk
The CEO of Goldman Sachs was asked about the reputational risks of crypto, stemming from major scandals like the collapse of FTX in 2022. He responded:
“I don’t correlate Sam Bankman-Fried (former CEO of FTX) with digital assets. Many people commit criminal acts regarding fiat currency and this does not create reputational risk around fiat currency.
Solomon emphasized that Goldman Sachs turns its reputation focus on its trading partners, not Bitcoin.
From a regulatory perspective, Goldman Sachs is limited to interacting with crypto as a regulated financial institution, but individuals and companies that believe in these assets as a store of value and speculative asset have the right to participate to the crypto market, and Salomon “certainly”. encourages” this.
Dive into blockchain
Although it does not offer spot products linked to BTC and ETH, Goldman Sachs is diving deeper into blockchain technology. On November 18, the company announcement a derivative platform focused solely on blockchain solutions.
The Wall Street giant said it launched the program in collaboration with “strategic industry partners” but did not reveal further details at the time.
Mathew McDermott, Global Head of Digital Assets at Goldman Sachs, recently revealed as the company prepares to launch three tokenization products for some of its major institutional clients.
Tokenization involves creating a digital representation of a real-world asset on the blockchain. McDermott said this represents a crucial opportunity for the bank due to growing customer demand for such products.
In addition to its blockchain-related initiatives, Goldman Sachs reported owning approximately $718 million worth of Bitcoin through spot exchange-traded funds (ETFs) in its latest Form 13-F. deposit with the United States Securities and Exchange Commission (SEC).
