Friday, December 22, 2017

Goldman Sachs launching new trading desk to be able to scalp cryptocurrency muppets

When a company's traders refer to their clients as muppets, then you can very easily determine how much disdain the brokerage has for the individuals who pay their bills.  And no matter how much Wall Street banks have tried to disparage the cryptocurrency sector in the past, if there is a chance for money to be made, and customers to be scalped, then greed always wins out over public rhetoric.

So with this in mind, everyone should suddenly be wary that Goldman Sachs is opening up a new trading desk to deal in cryptocurrencies.  And of course one has to wonder how long before they begin trading against the advice they give their clients?

Goldman Sachs - using its pre-blockchain name for the time being - is in the process of setting up a trading desk to make markets in digital currencies such as bitcoin. The bank aims to get the business running by the end of June, if not earlier, two sources said. A third said Goldman is still trying to work out security issues as well as how it would hold, or custody, the assets. 
Why the rush to have the world's first dedicated institutional desk? 
For the same reason that while Jamie Dimon was mocking bitcoin, Lloyd Blankfein saw an opportunity: unlike equities which retail investors have largely given up on realizing that equity capital markets are rigged and manipulated by central banks, retail investors are ever more fascinated with crypto - the price trends don't hurt - so much so that Coinbase now has more users than Charles Schwab. To Lloyd and Goldman this spells one thing: opportunity. - Zerohedge


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