Goldman Sachs CEO David Solomon has indicated that the firm might consider entering the spot market for Bitcoin and Ethereum as a market maker, provided there are significant changes in US crypto regulations.
Speaking at the Reuters Next event in New York, Solomon emphasized that Goldman Sachs is currently constrained by regulations that prevent it from holding cryptocurrency. However, he acknowledged the growing interest in digital assets, describing crypto as an “interesting technology” and noting the increasing attention it garners amid speculation about regulatory reform.
When asked about potential reputational risks tied to cryptocurrency, especially following high-profile scandals like the FTX collapse, Solomon drew a clear distinction. “I don’t correlate Sam Bankman-Fried (former FTX CEO) with digital assets,” he stated, adding that criminal activities tied to fiat currency don’t tarnish its reputation. Similarly, he noted that Goldman Sachs focuses its reputational assessments on business partners, not on Bitcoin or other digital assets themselves.
While the firm remains bound by its role as a regulated financial institution, Solomon expressed support for individuals and businesses that view cryptocurrency as a store of value or speculative asset. “I certainly encourage participation in the crypto market for those who believe in it,” he said.
Despite not yet offering direct crypto spot products, Goldman Sachs is actively investing in blockchain technology. In November, the company announced a spin-off platform dedicated to blockchain solutions, developed in partnership with undisclosed strategic industry collaborators.
Mathew McDermott, Goldman Sachs’ global head of digital assets, revealed plans to launch three tokenization products for institutional clients. Tokenization involves creating digital representations of real-world assets on blockchain, a space McDermott sees as a critical growth area driven by rising client demand.
Meanwhile, Goldman Sachs reported US$718 million worth of Bitcoin holdings through spot exchange-traded funds (ETFs) in its latest 13-F filing with the US Securities and Exchange Commission.
As the regulatory environment evolves, Solomon hinted that Goldman Sachs remains open to deeper participation in the crypto market, aligning its efforts with client demand and industry advancements.
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