Category Archives: Goldman Sachs

Auto Added by WPeMatico

BitFury Completes Coup with Appointment of Former SEC Commissioner in Director Role

Leading full-service blockchain technology company Bitfury has announced the addition of two key members to its Board of Directors. With the addition of co-founder of Korelya Capital, Antoine Dresch, and Annette Nazareth, a former staff of the US Securities and Exchange Commission (SEC) to the company, Bitfury is gaining essential experience in the right areas.

In the current climate, the latter’s appointment must be seen as a significant bonus on its own. Nazareth is an American attorney who served as a Commissioner of the SEC from 4 August 2005 to 31 January 2008.

Nazareth has also been Senior Counsel to former SEC Chairman Arthur Levitt and served briefly as the Interim Director of the Division of Investment Management. She then served as SEC Director of the Division of Market Regulation from March 1999 to August 2005. As Director, she had primary responsibility for the supervision and regulation of the US securities markets.

With this track record, she brings a valuable insight into the workings of current financial markets, also giving Bitfury an essential regulatory barometer with her comprehensive knowledge on the inside workings of the SEC.

Dresch joins Valery Vavilov, George Kikvadze, Bob Dykes, and Bill Tai as a voting board member at the company. With over 20 years in investment banking and positions at Goldman Sachs, UBS, and Morgan Stanley and as founder of DDMA advising media and internet investors in Europe, his profile adds further credentials to Bitfury moving forward.

“Antoine’s years of experience in investment banking and mergers and acquisitions will be valuable assets as Bitfury continues to grow. Annette will serve in a different capacity; as a trusted advisor, she will help guide and support Bitfury by offering her comprehensive knowledge of financial markets and regulation.”

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post BitFury Completes Coup with Appointment of Former SEC Commissioner in Director Role appeared first on BitcoinNews.com.

Morgan Stanley to Offer Clients Bitcoin Derivatives Trading

American multinational investment bank Morgan Stanley is reportedly planning to offer clients the chance to trade in Bitcoin derivatives, reports Bloomberg from an anonymous source.

The source, who claims to be close to the matter, shared with Bloomberg that the New York-based bank will be following in the footsteps of other Wall Street firms offering crypto-related services by dealing in contracts that give investors ”synthetic exposure to the performance of Bitcoin“. Investors will be given the option to go long or short using what is described as a ”price return swap”, with Morgan Stanley adding its own charge to each transaction that it facilitates.

Apparently, it is just waiting for enough institutional client demand and final approval for the internal processes to start offering these services, as the bank is already technically prepared for the Bitcoin trading.

While Morgan Stanley does not plan to trade in Bitcoin directly, the proposed services are tied to Bitcoin futures contracts. Any direct Bitcoin trading is unlikely to happen in the near future either, as CEO James Gorman has said customers will not be able to buy and sell directly through the bank.

Gorman has said, however, that the bank intends to build a cryptocurrency trading desk that will support derivatives of various digital currency assets. Andrew Peele, formerly of Credit Suisse Group AG, has been taken on by Morgan Stanley as head of digital asset markets to help institute this.

Goldman Sachs reaffirmed last week that it would not be abandoning its cryptocurrency trading desk, despite fake news report circling in the media. According to the firm’s chief financial officer Martin Chavez, the bank was even looking into expanding its crypto operations by launching a Bitcoin derivative.

Physical Bitcoin is not yet on the cards for Goldman Sachs yet, however, as Chavez explained: ”Physical Bitcoin is something tremendously interesting and tremendously challenging. From the perspective of custody, we don’t yet see an institutional-grade custodial solution for bitcoin, we’re interested in having that exist and it’s a long road.”

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Morgan Stanley to Offer Clients Bitcoin Derivatives Trading appeared first on BitcoinNews.com.

Nasdaq to Trial Prediction Tool for 500 Cryptocurrencies

Nasdaq, second-largest exchange in the world by market capitalization, is planning to add a tool to the exchange which will aid investors to predict crypto price movement, according to unconfirmed reports.

A person familiar with the company’s plans has indicated that it will shortly be adding crypto assets to its new Analysist Hub. The Hub, launched in 2017, computes traditional asset market fluctuations drawing on social media and other sources.

Wall Street has shown interest in the cryptosphere over past months, with major banks making statements of intent, although Brian Kelly’s prediction that the addition of the New York Stock Exchange (NYSE) and Goldman Sachs to the crypto status quo would cause the market to surge, has yet to happen.

Bill Dague, Nasdaq’s head of alternative data, is guarded in his response to the suggestion that the exchange giant is about to take the same steps as some of Wall’s Streets other major financial institutions, and commented, “…given the abundance of interest, we are exploring cryptocurrency related datasets… Whether or not we launch a crypto-related product remains to be seen.”

On the other hand, Nasdaq’s source had a less guarded response, suggesting that the service would provide information on the movement of 500 crypto datasets using resources such as Twitter, and possibly StockTwits and Reddit.

Nasdaq CEO Adena Friedman had hinted earlier this year that Nasdaq had been looking into crypto-related products when she remarked:

“Certainly, Nasdaq would consider becoming a crypto exchange over time… I believe that digital currencies will continue to persist it’s just a matter of how long it will take for that space to mature.”

An article published in May on the Nasdaq website even cited three coins that the exchange felt might be able to withstand future market turmoil if it transpired: Bitcoin (BTC), Litecoin (LTC) and Stellar (XLM).

Nasdaq will need to move fast with its any crypto additions to its Analyst Hub, as news services Reuters and Bloomberg are already lining up with similar plans to launch a crypto analytic tool.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Nasdaq to Trial Prediction Tool for 500 Cryptocurrencies appeared first on BitcoinNews.com.

Goldman Sachs Not Abandoning Crypto Trading Desk, Plans to Launch Bitcoin Derivative

A story circulated through the mainstream crypto media that Goldman Sachs was abandoning its crypto trading desk ended up being a fake news. Not only is Goldman Sachs not abandoning its crypto trading desk, according to its Chief Financial Officer (CFO) Martin Chavez, Goldman Sachs is looking to expand its operation by launching a Bitcoin derivative.

Martin Chavez says “I never thought I would hear myself use this term but I really have to describe that news as fake news”. The fake news made the rounds on 5 September 2018, the same day Bitcoin crashed from USD 7,400 to USD 6,400. Many people at the time speculated that the Goldman Sachs news helped drive this crash. Yet, the market hasn’t gone up since this fake news was reversed, suggesting it might just be a coincidental crash event.

Martin Chavez indicates that clients want a Bitcoin derivative, specifically saying “The next stage of the exploration is what we call non-deliverable forwards, these are over the counter derivatives, they’re settled in U.S. dollars and the reference price is the bitcoin-U.S. dollar price established by a set of exchanges”. Goldman Sachs is already settling Bitcoin futures contracts from the Chicago Mercantile Exchange (CME) and Chicago Board Options Exchange (CBOE) since May 2018. This new derivatives product Martin Chavez is talking about is like an in-house version of cash-settled Bitcoin futures.

It would be much better for Bitcoin, and much more groundbreaking, if the product Goldman Sachs plans to launch uses physical Bitcoins. However, Martin Chavez says “Physical bitcoin is something tremendously interesting, and tremendously challenging. From the perspective of custody, we don’t yet see an institutional-grade custodial solution for bitcoin, we’re interested in having that exist and it’s a long road”.

His argument isn’t entirely true, since Xapo, BitGo, and Coinbase offer institutional grade crypto custodianship that would be effective and sufficient for Goldman Sachs’ operations. However, it is unfortunate that Goldman Sachs is choosing to go with cash-settled derivatives – paper bitcoins, instead of actual bitcoins. Paper bitcoins are actually bad for the Bitcoin market, since they divert investment away from the spot market, causing Bitcoin’s price to be lower in the long-term than it would be if paper bitcoins didn’t exist. Unfortunately, paper bitcoins are proliferating on the Bitcoin futures markets in Chicago, on derivatives exchanges like BitMEX, and now Goldman Sachs.

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Goldman Sachs Not Abandoning Crypto Trading Desk, Plans to Launch Bitcoin Derivative appeared first on BitcoinNews.com.

Could Wall Street Banks Become Crypto Custody Specialists?

Wall Street banks are slowly beginning to consider crypto custody as another mainstream service.

This, despite the occasional dig at crypto from the big players on Wall Street such as Goldman Sachs recent “cryptocurrency mania” comment last week citing it as one of the top risks for the market, even though the very same bank is dipping into Bitcoin derivatives on behalf of its fund manager clients.

The above service offered by Goldman Sachs may well be client-driven but behind the usual anti-crypto spin, a different picture can be detected after a bit of surface scratching. The Financial Times suggests that “trendy young crypto-types” are the new kids on the Wall Street financial block, although what crypto-related products will come from these young brains is still to be revealed. However, the trend is very much toward research and crypto is the name on the tip of everyone’s tongues.

Analysts are suggesting that the new frontier on Wall Street could well be cryptocurrency assets custody; looking after customer’s cryptocurrency funds. At the back of this are fees, another way the bank can make money out of cryptocurrency without dabbling themselves. In this way, billions of dollars held in custody by the banks can be another payday for the big names on Wall Street.

Recent Bitcoin News reports have illustrated some of the problems of safe storage of cryptocurrency assets, which vary in degrees of complexity from multiple vaults with random back up keys to Swiss Bunkers carved into the sides of mountains. Thus, there is clearly scope for bank intervention on behalf of clients.

Reportedly, forerunners in this new race are New York City-based ItBit, Gemini and more lately Goldman Sachs and JPMorgan now lining up to offer their services. Others are Japanese broker Nomara and notably the Swiss Stock Exchange part-owned by the 130-bank SIX group conglomerate.

Sam Mcingvale, San Francisco-based head of Coinbase Custody suggest that his company is joining the custody fray with plans to cold-store USD 5 billion of institutional crypto assets by the end 2018. Customers need these services, he argues:

“People were saying: “Hey, we’re already holding Bitcoin with you, we trust you, but we need more; we need a regulatory component, we need monthly statements, we need a different type of insurance.”

 

Follow BitcoinNews.com on Twitter at @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com at https://t.me/bconews

Image Courtesy: Pixabay

The post Could Wall Street Banks Become Crypto Custody Specialists? appeared first on BitcoinNews.com.

Goldman Sachs Crypto Custodial Services May Be Just Around the Corner

Reports have suggested that Goldman Sachs is considering offering crypto custodial services for clients.

Rumors abound surrounding some of the larger Wall Street banks and their various flirtations with cryptocurrencies making it difficult to tie down what is actually in the pipeline. The latest unconfirmed story is that Goldman Sachs is venturing into crypto custody for its client’s benefit.

If this the case, it probably shouldn’t be totally unexpected, given recent activities at the bank after the recent change in leadership in Lloyd Blankfein’s replacement, David Solomon.

Solomon has been with Goldman Sachs since 2006, working his way from the joint head of the investment banking division, to the chief operations officer in 2016. Last month, he shared the news that the New York-based investment bank was expanding its cryptocurrency services offered to clients. He has publicly discussed the financial benefits of cryptocurrency trading,

The man who produces and DJs electronic dance music under the stage name DJ D-Sol has clearly already made an impression, although crypto seems to be an undercurrent flowing through the bank waiting for the right moment to emerge. Christopher Matta, co-founder of Crescent Crypto Asset Management and a former VP at Sachs, once famously said that he would invest his mother’s money into Bitcoin.

Reportedly, the plan is to take the next step after announcing Bitcoin futures to fulfill Solomon’s target for Sachs to “evolve its business and adapt to the environment” by offering a much-needed service for its clients. The new requirement for bank clients with cryptocurrency assets is to have somewhere safe to store their currency.

Although the bank hasn’t announced any action following hints that it was setting up a Bitcoin trading desk, this would be a step down that road. This would inject further confidence into a rather deflated crypto environment at present with the news that a big name such as Goldman Sachs had become a custodial bank for crypto assets. The bank’s response to the rumors was:

“In response to client interest in various digital products we are exploring how best to serve them in this space. At this point, we have not reached a conclusion on the scope of our digital asset offering.”

 

Follow BitcoinNews.com on Twitter at https://twitter.com/bitcoinnewscom

Telegram Alerts from BitcoinNews.com at https://t.me/bconews

Image Courtesy: Pixabay

The post Goldman Sachs Crypto Custodial Services May Be Just Around the Corner appeared first on BitcoinNews.com.

UK Bank Barclays Could Be Tapping into Crypto

It has been reported that UK bank Barclays has been looking into the possibility of opening a trading desk.

Three months is a long time in cryptocurrency circles. Bitcoin News ran a story in May suggesting that the bank had no such plans and would continue to monitor clients. Barclays spokesman Andrew Smith in an emailed statement in April commented:

“We constantly monitor developments in the digital currency space and will continue to have a dialogue with our clients on their needs and intentions in this market.”

Cryptocurrencies presented a “real challenge” earlier in the year for Barclays CEO Jes Stately who was said to have suggested at a shareholder’s questions session:

“…on the one hand, there is the innovative side of it and wanting to stay in the forefront of technology’s improvement in finance… On the other side of it, there is the possibility of cryptocurrencies being used for activities that the bank wants to have no part of.”

Barclays may still not want to have a part in these “activities” but there is activity happening at the bank, according to reports. The former head of trading at Barclays has a new position, now entitled ‘Head of Digital Assets Project: Barclays Investment Bank’, while the director of oil options trading at the bank, Matthieu Jobbe Duval, is now ‘Digital Assets trading – Consultant at Barclays’.

The implications are clear if these titles represent anything, and illustrates that Barclays has moved on since the May statements. Duval suggests that Barclays:

“Hired him to produce a business plan for integrating a digital assets trading desk into [the bank’s] markets business revenue opportunity, competitive landscape, budgeting and planning for delivery, IT buildout, capital and balance sheet impact.”

Business Insider, who ran the original story, said that a bank representative denied that any such project existed and crypto trading was not planned.

Other major banks Goldman Sachs and JPMorgan Chase have admitted to some cryptocurrency interest, with Goldman soon to open a desk after client pressure and JP Morgan at least building a team with boss Jamie Dimon almost conciliatory after scathing crypto comments last year.

 

Follow BitcoinNews.com on Twitter at https://twitter.com/bitcoinnewscom

Telegram Alerts from BitcoinNews.com at https://t.me/bconews

Image Courtesy: Pixabay

The post UK Bank Barclays Could Be Tapping into Crypto appeared first on BitcoinNews.com.

Wall Street Crypto Interest Continues as Fundstrat Accepts Bitcoin

Leading independent Wall Street research organization Fundstrat has announced that it is about to start accepting Bitcoin from global clients.

The trend in Wall Street currently seems split between joiners and leavers, those such as banking giant Goldman Sachs who, having listened to its client base, has demonstrated that it has seen the writing on the wall regarding cryptocurrency, and those leaving comfortable positions in banking to jump on the blockchain bandwagon wholeheartedly.

Those such as JP Morgan blockchain executives Amber Baldet who left to found her own decentralized app store and ex-vice president of Goldman Sachs who jumped ship to fire up a crypto asset management firm, both examples of the current lure of crypto and blockchain on Wall Street.

Fundstrat Global Advisers have decided to become joiners in its announcement that the firm will start accepting Bitcoin payments through Bitpay, the largest global blockchain payments provider. Reportedly, the organization is one of the few macro research firms to follow movements in the crypto environments and has decided to take the plunge. Managing Partner Thomas Lee commented on the move:

“Fundstrat found that accepting payments via BitPay is considerably simpler, faster and less expensive than bank wires… Bitcoin payments make it easier for our clients, particularly those outside the US, by offering more options to pay for our research services without having to deal with the hassles of currency translation.”

Its clients include institutional investors, wealth advisers, pension funds, and wealthy individuals requesting investment reports and profiles including cryptocurrency.

And it is not just Bitcoin that Wall Street is currently taking an increased interest in. Last month’s comments by SEC Director of Corporate Finance William Hinman that Ether wasn’t operating as a security has left its impact on New York’s financial hub, with CBoE’s president Chris Concannon declaring:

“We are pleased with the SEC’s decision to provide clarity with respect to current Ether transactions… This announcement clears a key stumbling block for Ether futures, the case for which we’ve been considering since we launched the first Bitcoin futures in December 2017.”

 

Follow BitcoinNews.com on Twitter at https://twitter.com/bitcoinnewscom

Telegram Alerts from BitcoinNews.com at https://t.me/bconews

Image Courtesy: Pixabay

The post Wall Street Crypto Interest Continues as Fundstrat Accepts Bitcoin appeared first on BitcoinNews.com.

Nasdaq Talks Over the Future of Crypto in Private Meeting

Unconfirmed reports indicate that Nasdaq held a closed-door meeting with half a dozen various companies this weekend in order to discuss amongst other topics, the integration of cryptocurrency into global markets.

That the individuals behind the second largest stock exchange in the world (by market capitalization) should be discussing cryptocurrency at this stage is not surprising. Earlier this year the exchange suggested that it could foresee opening its own cryptocurrency exchange in the future.

During an interview with CNBC, Nasdaq President and CEO Adena T Friedman raised the idea that Nasdaq would consider venturing in the crypto sector. She remarked:

“Certainly, Nasdaq would consider becoming a crypto exchange over time…I believe that digital currencies will continue to persist it’s just a matter of how long it will take for that space to mature.”

The companies at this particular meeting were said to included prominent cryptocurrency firms such as the Winklevoss owned Gemini Exchange. The brothers appearing just days after their ETF proposals being rejected at the SEC.

Blomberg attempted to get further details but Nasdaq simply verified the meeting. However, the unnamed source suggested that topics discussed included regulation and tools to measure the development of the industry and the likelihood of the members at the meeting having further discussions soon.

Larger institutions have been far more prominent in discussing the cryptocurrency industry this year and banking institutions on Wall St are at various stages in addressing where to position themselves in the market. Of which, some of them like the Goldman Sachs have taken a proactive stance in this regard.

CNBC’s Brian Kelly suggests that the addition of the New York Stock Exchange (NYSE) and Goldman Sachs to the crypto status quo will cause the market to surge. Nasdaq President Freidman suggests waiting for cryptocurrencies to “mature,” but other major exchanges around the world are clearly thinking of making the move early.

Earlier this year Freidman said of cryptocurrencies

“I think the technology is fascinating and it’s a very sound technology. It’s just a matter of making sure that the community is all-embracing it together.”

Follow BitcoinNews.com on Twitter at @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com at https://t.me/bconews

Image Courtesy: Pixabay

The post Nasdaq Talks Over the Future of Crypto in Private Meeting appeared first on BitcoinNews.com.

Can Blockchain Impact the Future of Real Estate?

With increasing reports of both Bitcoin and Ethereum being used to purchase property, it appears that digital currency is finding its place in the Real estate sector.

Although a recent Bitcoin News report illustrates that some banks are not prepared to allow customers to use mortgage equity to purchase cryptocurrencies, it is clear that real estate agents are not adverse to taking investors’ digital funds in exchange for bricks and mortar.

A recent article by the Washington Post revealed that in the US, a Miami penthouse listed at the time for 33 Bitcoin carried the stipulation that the client would not take any other form of currency. In the UK buying property using Bitcoin is far rarer. In fact, Bitcoin News recently reported that a Harris survey revealed that 27% of male millennials considered Bitcoin to be a better long-term investment than buying a property, assuming that they were even able to get on to the housing ladder.

It appears that buying property using cryptocurrency is more limited to groups that have made substantial profits trading the digital currency; the crypto “nouveau riche.” In the US the buying of real estate using currencies such as Bitcoin is far more widely accepted and new concepts are beginning to facilitate sales in innovative ways.

Longstanding real estate and private equity firm, Muirfield Investment Partners, have joined with the company in an attempt to use blockchain to introduce more liquidity to the real estate market by developing a token which can be freely traded, whilst remaining compliant with US security laws. Thomas J Zaccagnino, Muirfield’s founder, commented, “By tokenizing a real estate investment vehicle, investors are for the first time, able to freely trade their ownership on regulated secondary exchanges.”

Blockchain itself has become a boon to the industry with numerous applications. According to the Washington Post, in 2016 Goldman-Sachs projected a $2-$4 billion savings in the title insurance industry as a result of using blockchain to verify and store land titling. This said blockchain is not the only solution to finding cheap, speedy, solutions to recording land and property ownership.

The Post suggests that DLT can’t detect a forgery nor will it detect a foreclosure issue, which effectively means that such titles can’t be marketed, indicating that despite DLT’s effectiveness in real estate transactions, it does have its limitations, in that it can’t necessarily offer buyers title insurance.

Follow BitcoinNews.com on Twitter at @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com at https://t.me/bconews

Image Courtesy: Pixabay

The post Can Blockchain Impact the Future of Real Estate? appeared first on BitcoinNews.com.