Update: According to a report from The New York Times on May 2nd, 2018, Goldman Sachs hired Justin Schmidt to serve on the bank’s foreign currency desk.

Reportedly, this is because Bitcoin has similar trading movements to currencies in emerging markets. Goldman Sachs will trade Bitcoin once regulatory approval is garnered from the Federal Reserve and New York regulators.

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Goldman Sachs, one of Wall Street’s largest banks, is making headlines today with its hire of Justin Schmidt, a former digital currency trader. Reportedly, this marks the bank’s first digital currency-focused hire, as Goldman Sachs is rumoured to be launching a trading desk for digital currencies later this year.

Goldman Sachs could engage with the digital currency market

Following previous rumours, it is now confirmed that Justin Schmidt is joining Goldman Sach’s securities division as vice president and head of digital asset markets. The news broke earlier today on Tearsheet, and was subsequently verified by both Bloomberg and Business Insider.

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According to Business Insider’s report, Schmidt is Goldman Sach’s first hire set to focus on the digital currency sector, and the move could reflect the bank’s growing interest in the space.

Rumours of Goldman Sachs launching a digital currency trading desk continue to circulate in the industry following a report from Bloomberg in December 2017. The report claimed that Goldman Sachs is positioned to become the first Wall Street firm to make markets in digital currencies, citing unnamed insiders and a potential launch date of June 2018.

Other news outlets challenged Bloomberg’s report, and it remains unclear if Goldman Sachs will proceed with its purported plan to break into the digital currency market this year. With the news of its recent hire, however, the report seems increasingly likely.

Traditional investment institutions enter the digital currency market

The popularity of digital currencies and the industry furthering its status as a legitimate asset class continues to attract retail investors and traditional investment institutions. Last year, Bloomberg added Litecoin, Ripple, and Bitcoin Cash to its price terminals, and companies like InvestX continue to launch funds that accept digital currencies.

The possibility of Goldman Sachs formally engaging with the digital currency market is potentially huge for an industry that is attempting to prove itself to naysayers in the retail investment community. With the bank now employing industry experts like Schmidt, the community is undoubtedly eager to observe the Wall Street giant’s next move.

Image credit: Goldman Sachs logo

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