News that global investment bank Goldman Sachs is to begin using its own money to trade cryptocurrency has emboldened the sector with expectation that it will pave the way for wider adoption in Wall Street.
The new trading operation will take a cautious approach to trades and will not initially be buying and selling actual Bitcoins however pending regulatory approval this is an area the bank may consider further down the line.
“I would not describe myself as a true believer who wakes up thinking Bitcoin will take over the world… For almost every person involved, there has been personal skepticism brought to the table,” Rana Yared, an executive at Goldman charged with overseeing the creation of the crypto trading operation, commented
Since its creation in 2009 by the anonymous and shadowy Satoshi Nakamoto, Bitcoin has been pitched as a subversive currency away from the controls of global banking elites however the latest move may now usher a new era for the wider crypto market.
With greater competition in the space from well financed institutions, many commentators now believe that 2018 may see cryptocurrency prices smashing thorough the record levels seen at the end of last year.
Many tech companies like Square have already begun offering Bitcoin services to their customers, and commodity exchanges in locations around the world offer customers the ability to trade Bitcoin futures contracts.
Goldman Sachs has already dipped its toe in the crypto space with investment in Boston-based Circle, one of the top destinations for institutional investors looking to trade crypto.
Co-founder and CEO of Circle, Jeremy Allaire now hopes to convince more retail investors to get off the sidelines and add crypto to their portfolios.
“In the retail arena we think there’s still a major market need for people who haven’t invested in this space,” Allaire says. “[They] want a product where they can invest in a broader range of assets without becoming day traders.”