Wall Street giant Goldman Sachs Group Inc GS likely isn't listening to rival JPMorgan Chase & Co. JPM's comments on bitcoin.
JPMorgan's CEO Jamie Dimon blasted bitcoin on multiple occasions and argued the digital currency is a fraud and worthless. But Goldman Sachs is looking to set up a new operation that would dedicate itself toward bitcoin trading, Forbes reported.
Goldman Sachs' high profile name would certainly add legitimacy to bitcoin, the reputation of which is less than stellar and characterized by highly volatile swings and its association with criminal activities. It should be noted that Goldman Sachs' core business is trading and the bank is struggling to maintain its revenue. As such, a move into bitcoin trading may seem like the logical one to help its struggling trading business.
"In response to client interest in digital currencies, we are exploring how best to serve them in this space," a Goldman spokeswoman told CNBC in a statement.
Goldman Sachs is also no stranger to operating in products that are unfamiliar to many individuals, Forbes added. For example, the bank was notorious for including exotic derivatives in its trading — not to mention selling mortgage-backed credit swaps at the peak of the financial crisis.
"I think it behooves the smart and more forward-thinking firms to be involved in cryptocurrency," Matthew Goetz, managing partner and CEO at cryptocurrency investment firm BlockTower Capital and a Goldman Sachs executive, also told CNBC. "Given the number of new services and business lines that will stem from it as this important new industry continues to build and institutionalize."
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