There was a news report from Business Insider on September 5th titled “Goldman Sachs is ditching near-term plans to open a bitcoin trading desk,…” which turns out to be “Fake news”.

Martin Chavez who is the Chief Financial Officer of Goldman Sachs said in the Techcrunch Disrupt event that the report was not accurate.

He said:

“I never thought I would hear myself use this term but I really have to describe that news as fake news,”

CNBC Fast Money Tweeted:

Goldman CFO responds to the report that took down bitcoin $BTC pic.twitter.com/oKXWvG7XOu — CNBC's Fast Money (@CNBCFastMoney) September 6, 2018

Goldman Sachs was one of the first major institutions to show interest in Cryptocurrencies like Bitcoin by backing Circle which is a platform to trade Cryptocurrencies. In December last year, Goldman had announced their plans to set up a Crypto trading desk and have since been involved in providing liquidity to Bitcoin future contracts from CME and CBOE.

But after the recent fake news about Goldman rolling back its Crypto plans, the Crypto market took quite a hit this week. Although it cannot be said that it was the only reason for the pullback but certainly it was one of the reasons for the sudden crash in the market.

Chavez says that Goldman is looking into providing custodial solutions for investors but the timeline of when that will happen is uncertain at this point and its a long road ahead.

CNBC quotes him saying:

“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.”

Chavez also said that Goldman is working on a type of Bitcoin derivative which will be settled in US Dollars in over the counter trades whose reference price will be derived from various exchanges.

Physical Bitcoin is being explored by Bakkt, which plans to launch a platform for buying and selling of fully collateralized Bitcoin without margin trading.

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