Wall Street Banks are Falling Back from Digital Currencies, Says Report

Dec 25, 2018 at 12:00 Update Date :Dec 25, 2018 at 12:00 UTC

Wall Street banks are falling back from digital currency-related products; resisting introducing the products due to a decline in the value of cryptocurrency this year. The decline in the graph of digital currency led Wallet Street banks to avoid cryptocurrency related products in the market. So far, no Bitcoin trading desk has been launched by the Wallet Street banks – as they continue falling back from digital currency.

Wallet Street Banks Stepping Back

As per the reports of Bloomberg, despite the entries of multiple leading firms in the market, only a few have accomplished. The reports read as:

“While none has thrown in the towel, and some continue to develop a trading infrastructure, most flinched as the value of virtual coins collapsed.”

One of the firms is the banking giant Goldsman Sachs. Earlier in May, it was reported that Goldsman Sachs was planning to launch a bitcoin trading desk, where the bank would use its money to trade with the client, with contracts associated to the price of Bitcoin. It was also estimated that the users would include funds linked in crypto, along with the future bitcoin contracts as launched by Cboe Global Markets Inc. and CME Group Inc. in the year 2017. However, to this month, no Bitcoin trading desk has been launched.

In September, it was announced in the reports that the plan had been cancelled. But quickly after the announcement, Martin Chavez, the CEO of Goldsman Sachs, proved these reports as ‘fake news’. He stated:

“Exploration of the digital asset class is an ever-evolving process and is in response to significant client interest.”

There were also some rumours that Morgan Stanley was planning to offer BTC derivatives, however, all these things never came up. The more interesting part is Citigroup Inc., as per the reports, had developed a receipt based on the digital asset which works in the same way as an American depositary receipt, but nothing had happened.

Now it is cleared that not all the plans have come to actual results, still, there is a hope that some products would outshine in the market. Bakkt, a service pegged by the International Exchange, which is a parent firm of the New York Stock Exchange, is said to offer BTC future contracts and is expected to launch by January 20, 2019.

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