We all are aware that Goldman Sachs has re-opened its crypto trading desk again. The desk was launched in 2018 after 2017 cryptocurrency growth. Mathew who heads the digital assets team at Goldman Sachs shared details about the trading desk and blockchain projects he is seeing beyond cryptocurrencies. He also added that 2017 was a retail-driven market. He witnessed a huge demand across different industries.

Corporate Treasures

Goldman is witnessing huge interest from corporate treasurers. One of the biggest examples is Tesla, which put Bitcoin on its balance sheet.

Although Mathew did not take the effort to mention the counter-point that Tesla’s share prices decreased. 

The interest of an Institution

Mathew confirmed that the interest is primarily in Bitcoin. According to a survey of 300 institutional clients, he was surprised to know that more than 40% already had exposure to cryptocurrencies via security products and direct holdings.

Hence, the Goldman trading desk will solely focus on CME futures and non-deliverable forwards. The banks won’t trade actual coins and that is where the rising demand is coming from. 

Mathew told that he will have to think about how they can facilitate this demand cleverly. He said that he is facing the issue since not everywhere in Asia, cryptocurrency is legal.

Consolidation Expected

Mathew noted that there has been progress by crypto incumbents in terms of risk management. The banks are developing their own offerings, but it will take some time.

Apart from cryptocurrencies, Goldman is also involved in several Blockchain projects. Mathew feels that this represents diverse opportunities in the financial industry.

Three famous projects where Goldman participated are HQLAX Collateral Management Solution, CLSNet FX Blockchain Solution, and Axoni’s DLT Equity Swap Platform.

Mathew described it as an exciting time for exploring the technology potential.