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Goldman Sachs Executive Denies Leaving Bitcoin (BTC) Trading Desk Plan

Global bank giant Goldman Sachs rejected on Thursday a Business Insider report that the institution has shelved the plan for creating a Bitcoin (BTC)-based financial instruments. The investment bank chief financial officer (CFO) Martin Chavez described the media allegation as fake news while speaking at the TechCrunch Disrupt Conference in California.

“I was in New York yesterday, and I was co-chairing our risk committee, and I saw the news article. It wasn’t like we announced anything or that anything had changed for us…I never thought I would hear myself use this term, but I really have to describe that news as fake news,” Chavez said as quoted by TechCrunch.

Chavez explained that BTC trading desk plan is on the exploration table as the investment bank’s clients want cryptocurrency-related instruments. Goldman Sachs has moved the research to a new phase, called non-deliverable forwards, which means that the bank is now looking into possible into over-the-counter (OTC) derivatives, settled against the Bitcoin. If the bank decides to use this type of instruments, the reference rate would be based on the BTC-US dollar trading price of several exchanges, Chavez said.

“When we talked about exploring digital assets that it was going to be exploration that would be evolving over time,” Sachs’ CFO outlined.

“Maybe someone who was thinking about our activities here got very excited that we would be making markets as principal and physical bitcoin, and as they got into it they realized part of the evolution but it is not here yet.”

On Wednesday, Business Insider reported that Goldman Sachs had dropped the BTC trading desk plan because the bank had run into a ‘regulatory roadblock’ as per information of anonymous sources familiar with the institution’s projects. The news was widely reported and caused BTC and other cryptos price tumble, according to CNBC.

In July, Goldman Sachs appointed David Solomon as a new chief executive officer (CEO). Solomon is considered a “crypto friendly” compared to his predecessor, the long-running CEO Lloyd Blankfein. In June, Solomon, the bank’s chief operating officer (COO) at the time, said that the institution is examining new crypto offers to meet the new demands that virtual coins create. Goldman Sachs must “evolve its business and adapt to the environment”, Solomon explained.

Several weeks after Solomon was appointed as Sachs’ boss, the US bank invested in the blockchain software developer Axoni.

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