Goldman Sachs CEO David Solomon said the firm could explore becoming a spot market maker for bitcoin (btc) and ethereum (eth) if the regulatory environment in the US undergoes significant changes.
Speaking in the <a target="_blank" href="https://twitter.com/i/broadcasts/1YqxovdmDVvJv”>Following At an event in New York, Solomon acknowledged that Goldman Sachs is currently unable to hold cryptocurrencies due to existing regulations. He described cryptocurrencies as an “interesting technology” and noted the increasing attention they are receiving as investors anticipate changes to the regulatory framework.
Despite the firm's continued efforts to help clients navigate the crypto space, Solomon expressed uncertainty about the future direction of US regulatory policies governing digital assets.
No reputational risks
The CEO of Goldman Sachs was asked about the reputational risks around cryptocurrencies, stemming from major scandals like the FTX collapse in 2022. He responded:
“I don't correlate Sam Bankman-Fried (former FTX CEO) with digital assets. “There are many people committing criminal actions regarding fiat currency and that does not create a reputational risk around fiat currency.”
Solomon noted that Goldman Sachs directs its reputation lenses toward its trading partners, not bitcoin.
From a regulatory perspective, Goldman Sachs is limited to interacting with cryptocurrencies as a regulated financial institution, but people and companies who believe in these assets as a store of value and a speculative asset have the right to participate in the cryptocurrency market. , and Solomon “certainly encourages” that.
Dive into blockchain
Despite not offering spot products related to btc and eth, Goldman Sachs is delving deeper into blockchain technology. On November 18, the company announced a spin-off 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 that the company is preparing to launch three tokenization products for some of its key institutional clients.
Tokenization involves creating a digital representation of a real-world asset on the blockchain. McDermott said this presents a critical opportunity for the bank due to growing customer demand for such products.
In addition to its blockchain-related initiatives, Goldman Sachs reported holding approximately $718 million in bitcoin through spot exchange-traded funds (ETFs) in its latest 13-F form. presentation with the United States Securities and Exchange Commission (SEC).
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