Wall Street Giants Delay Crypto Sojourn Following Plummeting Prices

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Photo Credit: Crainsnewyork

According to a Bloomberg report, Wall Street giants are beginning to postpone their plans of participating in the crypto industry especially as the value of cryptocurrencies continues to plummet.

The report which begins with the phrase, “Limbo — that’s where to find Wall Street when it comes to cryptocurrencies,” focuses its attention on the efforts of banking giants Goldman Sachs, Morgan Stanley and Citigroup to expand their services into the crypto sphere.

According to sources who are privy to the happenings in Goldman Sachs crypto business, their progress so far has seemed rather too slow. More so, the company’s crypto non-derivative funds have so far only attracted 20 clients.

In another development, Justin Schmidt, head of the digital assets division at Goldman Sachs remarked in November that regulators were limiting his plans. Also, sources added that the company is looking to add a digital asset specialist to its fold.

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Although Morgan Stanley had earlier announced that it is ready to launch swaps for tracking Bitcoin futures, it has up to this moment not received a single contract. However, sources noted that the company is ready to launch its crypto services as soon as there is any sign of demand.

Even Citigroup and Barclays have suffered the same fate. Sources who have been following the development so far reported that the U.S. based banking groups have not yet traded any of its crypto related products within its regulatory framework, and to make matters worse, two employees hired by Barclays to explore the crypto industry left their positions this year.  A spokesperson commenting on the development stated that Barclays at the moment has no plans of opening a crypto trading desk.

It would be recalled that former Goldman Sachs partner and current CEO of Galaxy Digital Mike Novogratz predicted that institutional investors would begin to participate in crypto deals in Q1-Q2 2019.  Following this, both Galaxy Digital and Goldman Sachs invested about $15 million in U.S. crypto custody service BitGo.

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