Goldman Sachs Cryptocurrency Update, ‘Healthy’ Market Changes

American Investment Bank on Custodial Services, Claims Recent Price Movement is “Healthy” For Crypto

Bitcoin, Cryptocurrency, Goldman Sachs–While most of the world hinges upon price news surrounding the the precipitous fall in value for Bitcoin and most of cryptocurrency, Wall Street megalith Goldman Sachs is updating clients on where they stand in relation to securing digital assets.

Despite the price fall experienced over the last two weeks, a growing number of clients for the big bank are posting inquiries into whether they can find safe harbor for their crypto assets. According to Bloomberg, Goldman has not made any progress on the front of direct custodian features for Bitcoin and altcoin holders, with the bank’s head of digital asset markets Justin Schmidt commenting upon the lack of availability at a conference in New York.

“One of the things they ask me is ‘Can you hold our coins?’ and I say ‘No, we cannot,” One of the things we have to take into consideration when we’re building out our business is what we can and cannot do from a regulatory perspective.”

While Goldman may not directly offer a service for storing client coins, it has made efforts to enter the space–despite the murky legal landscape of cryptocurrency–by investing in custodial service provider BitGo Holdings Inc. in October. In addition, Goldman was one of the first to clear Bitcoin futures offered by Cboe Global Markets Inc. and CME Group Inc., showing some inclination by the company to wade into the space of cryptocurrency–even with prices in their present spiral.

While Goldman has yet to outright trade in the digital assets, there were rumors reported last year that the company was considering opening a trading desk, a point that stirred up contention this past September.

Schmidt went on to comment that clients appear to have raised some demand for the bank to offer direct custodial services, particularly with the level of complexity required for the average trader to maintain their private keys and establish their coins in a space safer than what most exchanges currently offer. Some of the conversation from the client end has been around the free-falling price of cryptocurrency, and the outlook that now appears shrouded as the asset reaches its lowest point on the year.

With some institutional players such as VanEck still in the running for the creation of a Bitcoin Exchange-Traded Fund, a renewal in the crypto markets could pose more demand upon Goldman to offer expanded services to clients. Schmidt cited Bakkt and last month’s announcement by Fidelity to enter the space of cryptocurrency as positive developments for the investment side of the industry. He also acknowledged that institutional investors fall on the conservative side, which accounts for the increased murmuring over the lack of custodial services,

“Custody is this foundational piece that is absolutely necessary. Custody is part of an overall integrated system where different parts need to work well with each other and safely with each other and you have to be able to trust all the different parts in that chain, from buying something to transferring it to storing it in for the long-term.”

Schmidt concluded with a statement of encouragement for crypto investors struggling with the recent market crash, claiming that the rapid shift in valuation would shake off some of the less desirable and rampant speculation present in the industry,

Author: Michael Lavere

Goldman Sachs is Signing up Customers for its Bitcoin Trading Product: Report

Investment banking giant Goldman Sachs has quietly begun signing up a limited number of customers for its yet-to-launch bitcoin trading product.

Citing a source familiar with the matter, The Block reports that the 149-year-old Bulge Bracket bank has onboarded a “small number of clients” to actively trade the derivative, a non-deliverable forward, which is a cash-settled product that is comparable to a futures contract but does not trade on an exchange. Additionally, the bank continues to consider launching custody services for cryptoassets.

Notably, the publication’s source also contradicted an earlier report from another crypto site which alleged that Goldman Sachs was “actively exploring the creation” of a non-deliverable forward for ether, the native asset of the Ethereum platform. That would have been a major stamp of approval for Ethereum, as well as altcoins in general, as it seeks to achieve the level of Wall Street exposure that bitcoin has begun to see over the past 12 months. However, the source said that the bank is not pursuing the creation of an ether derivative.

At present, bitcoin derivatives are available on several regulated US trading platforms, including options exchanges CME and CBOE. Both of these firms offer cash-settled bitcoin futures contracts, and each has given investors reasons to believe that they will expand their crypto offerings in the future. CBOE, on its part, has outright expressed its desire to remain a leader in the cryptocurrency derivatives marketplace, while CME has launched an ether price reference rate but in public statements has been less-than-enthusiastic about the crypto industry.

LedgerX, an institutional crypto derivatives platform that currently offers a suite of bitcoin products, is reportedly building out support for ether as well, pending approval from the Commodity Futures Trading Commission (CFTC).

Meanwhile, Bakkt, a crypto startup launched by the owner of the New York Stock Exchange (NYSE), is preparing to launch its first bitcoin futures product, which is scheduled to begin trading on Dec. 12. Unlike the contracts available on CME and CBOE, Bakkt’s bitcoin product will be physically-settled, meaning that actual bitcoins will change hands when the contracts expire.


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Author: Josiah Wilmoth
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Goldman Sachs Dips Deeper into Crypto

Investment banking giant Goldman Sachs and Galaxy Digital, the crypto merchant bank set up by former Wall Street banker Mike Novogratz, are among the investors participating in BitGo’s series B funding round.

BitGo is a California-based blockchain security company, which in mid-2014 became the first company to commercialize multi-signature cryptocurrency wallets.

According to the Bloomberg report, BitGo brought in a total of USD 58.5 million in the funding round, out of which the two firms together invested USD 15 million. The report further noted that securing investments from high-profile financial firms like Goldman Sachs may help the crypto security startup attract more wealthy individuals and financial institutions as clients.

According to Mike Novogratz, the move represents yet another step on the way to develop the architecture needed for institutions to fully embrace crypto:

In the United States, money managers are required to turn assets over to third party custodians for security reasons. The same applies to institutions that are managing large amounts of money in the form of digital assets, which explains why Wall Street is so keen on getting more trusted custodians into this market.

Explaining why custody is such an important issue to large crypto investors in particular, BitGo’s co-founder and CEO Mike Belshe said “If you were investing in any other asset class, you’re probably not worried about the asset just disappearing – but this one, people still have that fear,” adding “we’ve got to conquer that.”

Despite investing in BitGo, Mike Novogratz and Galaxy Digital are already working with other companies on crypto custody services. As Cryptonews.com reported earlier this week, Galaxy Digital will be the “alpha crypto custody client” for Fidelity’s newly announced crypto initiative, Fidelity Digital Assets, a full-service digital assets platform for financial institutions.

With USD 7.2 trillion of assets under management, Fidelity is the fourth largest asset manager in the world. It has been operating in the financial services industry since 1946.


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Author: Fredrik Vold
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Ex-Goldman Sachs President Gary Cohn Joins Blockchain Startup

The blockchain space became a little stronger today as former Goldman Sachs president Gary Cohn announced that he had joined the advisory board of distributed ledger technology (DLT) startup Spring Labs.

Former Trump Advisor Joins Blockchain Startup

In addition to his former position at Goldman Sachs, Cohn also worked in the White House as President Trump‘s top economic aides. Cohn left his position as director of the National Economic Council back in March of this year when he could not agree to President Trump’s steel and aluminum tariff plans.

Fintech startup Spring Labs is currently working on a blockchain solution to decentralize identity and credit information. Their solution aims to be more secure and efficient than current centralized options, such as Equifax.

Everyone remembers the great Equifax hack that happened last September, impacting roughly 143 million U.S. customers. This hack was possible due to a centralized point of failure. Blockchain’s decentralization means that there is no single point of failure. Would-be attackers must penetrate many sources for a hack even to be possible.

Cohn told MarketWatch that he sees the potential that blockchain will add to solving this problem, stating: “[It’s] an obvious place to take a very, very analog industry and digitize it,” also calling Spring Labs a “unique opportunity.”

Cohn Not a Fan of Bitcoin

Cohn was interested in blockchain technology back when he worked in the White House, explaining that he has since evaluated many opportunities. Cohn likes the blockchain technology behind cryptocurrency but, as CCN reported, is not a fan of bitcoin and other cryptocurrencies.

“I have been very interested in blockchain technology for a number of years, and Spring Labs is developing a network that could have profound implications for the financial services sector, among others,” explained Cohn.

Although Cohn does not support bitcoin and other individual cryptocurrencies, he did say that “we all know all the inefficiencies of the existing currency world and blockchain clearly helps to eliminate them at some point in the future.”

Cohn will join Spring Labs’ as a member of their board of advisors. Other notable advisors for Spring Labs include former TransUnion executive Bobby Mehta and Coinbase chief legal officer Brian Brooks.


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Author: Benjamin Pirus
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Google and Goldman Sachs Invest in Blockchain Payment Startup Veem

Veem has raised $25 million from some of the biggest names in Silicon Valley and on Wall Street.

San Francisco-based startup Veem, a blockchain-powered payment service for small businesses, has reportedly raised $25 million in a funding round led by Goldman Sachs, with GV (formally Google Ventures), Kleiner Perkins and Silicon Valley Bank also participating.

According to the announcement, Veem plans to use the funding to further expand its multi-rail platform that leverages blockchain technology to ensure speed, security, and the lowest possible fees by automatically finding the best possible path for each international fund transfer. This technology is a natural progression from the SWIFT payment system.

“We’re thrilled to have Goldman Sachs lead our investment round. This funding will help us expand our footprint, increase our distribution and form new strategic partnerships,” said Marwan Forzley, CEO and Founder of Veem.

Veem notes that its customer base has exploded to over 80,000 small businesses in 96 different countries.

GV general partner Karim Faris, who led the investment in Veem, recently told Forbes that the company could be the first bitcoin startup to go public.

“We’re not a strategic investor. It’s definitely not a strategic thing. It’s an opportunity to create a stand-alone company and in the process make a financial return on a good exit or an IPO down the line,” said Faris, who also sits on Veem’s board of directors.

The latest fundraising round brings Veem’s total amount raised to $69.3 million.


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Author: CRAIG RUSSO
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Winklevoss Twins Win Patent for Securely Storing Digital Assets

The Winklevoss twins have won a patent for securely storing digital assets which adds to a long list of nine successful patents won by the billionaire twins, per information published on the website of the U.S. Patent Office.

The new patent, labeled 10,068,228 sets out a plan for cold storage of digital assets by building a computer network, made up of isolated computers used to host secure storage wallets for cryptocurrencies and cryptocurrency exchange-traded products (ETPs).

According to the filed document with the Patent Office, the computers will be physically separated from one another, but will be connected to the blockchain when moving assets and carrying out transactions on the network. As a result, they will effectively function as cold storage devices permitting user access only with the use of unique cryptographic keys.

New storage accounts on the network will have a separate cryptographic key, divided into several parts with each fragment saved onto an external storage device such as a USB drive, physically engraved onto paper, laminated cards and more.

An excerpt from the patent document abstract states that the “reference identifier” may be associated with each “digital asset account.”

“A respective reference identifier may be associated with each digital asset account. At least one of the one or more private keys corresponding to each digital asset account may be divided into a plurality of private key segments and written to a card along with the respective reference identifier to create sets of collated cards, wherein each set comprises cards corresponding to different private keys.”

The storage of the cryptographic keys starts at production. According to the document, they may be stored on both physical and electronic mediums, but at least, one set of the keys must be kept on an electronic storage device such as a USB drive. The document further states that, when keys are not created onsite at the storage location, they must be delivered in person or via fax to the storage location. Owners must also present three separate forms of identification when creating and accessing their accounts.

The application reads in part:

“In embodiments, private keys for a multi-signature account may be distributed to a plurality of users who are required to authorize a transaction together. In embodiments, private keys for a multi-signature account may be stored as backups, e.g., in secure storage, which may be difficult to access, and may be used in the event that more readily available keys are lost.”

Several industry heavyweights have been clamoring for a reliable custody solution. Earlier this year, Goldman Sachs announced it was considering launching a crypto custody service. Famed crypto investor Mike Novogratz also weighed in on the matter, while speaking to Ran Neu-Ner on CNBC’s ‘Cryptotrader,’ where he suggested that a custody service from a trusted source could result in a price recovery of digital assets.

“I think the next move up is going to need custody from a trusting source. […] If I’m in the state of Wisconsin, I’m not going to risk my job on a company called BitGo.”


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Author:  Jimmy Aki
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Do NOT dump your BTC, ETH, LTC – 3 Reasons Why – Do Not Panic

A $40 billion drop from the crypto market in a day – Why you shouldn’t still panic?

On Sept. 6, the crypto market lost almost $40 billion from its valuation in under 24 hours, exhibiting one of the steepest decreases in the previous three years.

In mid August, the digital currency advertise dropped to its yearly low at $192 billion, however it took seven days from Aug. 7 to Aug. 14 to record such an extensive drop in valuation.

Preceding Wednesday, during the time of August, Bitcoin demonstrated its largest amount of soundness since June of 2017, as specialists at Diar noted. From Aug. 8 to Aug. 26, the cost of Bitcoin remained moderately stable in the $6,000 area, before starting a late restorative rally over the $7,000 obstruction level.

3 Reasons you should not panic

1. There is not a specific 1 Reason for the decline – Stay safe from FUD

The biggest thing you need to realize while reading online news (“fake news”) is that the price decline is never due to a single reason. From Goldman Sachs delaying its trading desk, delay of Bitcoin ETF, China FUD, and India’s ban – Nothing has full control on the crypto industry, and has nothing to do with the sharp decline of BTC, ETH or any of your crypto.

2. Sharp Decline and Sharp Fall is “Normal” for the Cryptocurrency market

Have a look at the history of Bitcoin. Bitcoin price declined to $45 from $259.34, down 83% in April 2013. From $1163 to $152.40 in January 2015, down 87%.

Think of people who sold Bitcoin at $45.

 

3. Fake Volumes are controlling the market – They want you to Sell your Cryptocurrencies

Alex Kruger, a business analyst and a crypto trader, expressed not long ago that Bithumb, South Korea’s second biggest digital currency trade behind Kakao-run UPbit, said that more than $250 million worth of phony volume was made since Aug. 25.

He clarified that one gathering of traders has been exploiting Bithumb’s 120 percent exchanging charge payback, which can produce about $90,000 in net wage, with a $250 million day by day exchanging volume.

Straightforwardly or in a roundabout way, the strategy used by Bithumb has boosted wash exchanging that knocks up the day by day exchanging volume of the cryptographic money trade. The end result is a day by day net wage of $90,000 for a gathering of brokers and a huge increment in the every day exchanging volume of Bithumb.

In any case, while the strategy prompts a win-win circumstance for the two gatherings, it influences the worldwide digital money trade showcase adversely — as it decreases the genuineness of the universal exchanging volume of cryptocurrencies.

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Author: Nadja Eriksson
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This AI Tracked Unusual Market Behavior Before Today’s Big Crypto Drop

Earlier today, news spread that Goldman Sachs was sidelining plans of opening its cryptocurrency trading desk, a report coinciding with a market that took a sharp downward turn. The other day, market analysts saw someone take a 10,000 BTC short position while overall market sentiment has been positive.

Top analysts have been questioning why someone would take a $74,000,000 short position so quickly. It didn’t make sense unless he knew something that they didn’t. Only a few days after he started shorting there is some bearish news that comes out.

Others speculate that it could have been someone at Goldman Sachs themselves who took a $74m short position, waited 2 days, then announced they’re pulling out of Crypto.

These speculations have been just that, speculation. But with new AI technology keeping a watchful eye on the cryptocurrency market, there is evidence that points to a deliberate market manipulation, though by whom is still up for debate. And CCN just got the scoop, directly from the data source.

What Happened:

When the crypto drop occurred in the morning for quite some time traders were looking for news behind such unusual -10% move across the board. Bitcoin, Ether, Litecoin and other tokens all declined on substantial volume.

Later in the day, the catalyst was found: Goldman decided to pause developments on its rumored crypto trading desk. Many comments around this news were regarding potential insider trading and the fact that institutional buyers would like to get into the crypto space at lower levels thus manipulating the markets.

Data scientists and market analysts from the RoninAI team, an AI-based crypto signals platform, took a closer look into the situation to see any red flag activities surrounding the drop. A number of indicators were pointing to some unusual behavior right before the drop. One of them is the social sentiment that sporadically increased minutes before the actual drop took place.

The three-day chart below indicates that such volatility in social sentiment takes place often and each time it happens AI algorithms react to it.

This chart doesn’t indicate bullish or bearish, rather a sudden influx of activity that is not authentic. To zoom in, let’s look into the last couple of hours preceding the event. It is very clear how social sentiment spiked above the 3 standard deviations from its mean levels. Historical data indicates these spikes are not typically naturally occurring events.

Three standard deviations event occur in about 0.3% of cases and every time it happens the RoninAI team studies the event to analyze potential market effects.

In the morning drop, the break above the 3 standard deviations took place about 10 to 15 minutes right before crypto declined to spur more questions as to whether such an event was, in fact, a market manipulation or not. The timing in addition to the unnaturalness of such a spike is strong indications.

Data scientists strongly believe this was either market manipulation or insider trading, but are reluctant to give a definitive answer for obvious reasons.

Regardless, the good news for the Bulls is that whoever is shorting 10k BTC has to buy back at some point and it’ll likely push the price up significantly. The bad news is WHEN do they start closing the short positions and buying back. There’s no real way to predict how this event will affect the market in the short and long term.

Disclaimer: Data and social sentiment charts/information was provided by RoninAI and do not reflect the opinion of CCN.


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Author: Kim Adsitt
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Goldman Sachs, Wall Street Banks Sink $32 Million into Enterprise Blockchain Startup

We may, as Lightning Labs CEO Elizabeth Stark said earlier this year, be entering a “bitcoin not blockchain” world, but the global banking cabal isn’t ready to capitulate on its support for enterprise blockchain products just yet.

LIONBIT

Indeed, Axoni, an enterprise blockchain startup founded in 2013, has just concluded a $32 million Series B funding round headlined by a group of Wall Street’s largest financial institutions.

Announced on Tuesday, the funding round was led by Goldman Sachs and Nyca Partners and featured investments from major financial industry firms such as Wells Fargo, JPMorgan, Citigroup, and Franklin Templeton. The funding round also included more conventional blockchain investors, including Digital Currency Group, Andreessen Horowitz, and Y Combinator.

“Our strategic partners have been critical to our success so far; we are delighted to strengthen and expand those relationships with this financing as we continue to deploy Axoni’s technology,” said Greg Schvey, CEO of Axoni.

Axoni plans to use its new capital to power the development of its AxCore platform, which is intended to underpin the next generation of platforms that operate in the $11 trillion credit derivatives market. Toward this end, the firm plans to place a particular emphasis on building out AxLang, an Ethereum-compatible smart contracts scripting language designed to facilitate formal verification.

TIP

“The adoption of distributed ledger protocols in capital markets resembles the early days of adopting TCP/IP for distributed enterprise applications,” said C. Thomas Richardson, head of Market Structure and Electronic Trading Services at Wells Fargo Securities. “We continue to be impressed with Axoni’s ability to facilitate such adoption by identifying use cases that could benefit from blockchain technology.”

The firm has already signed a major partnership with the Depository Trust and Clearing Corporation (DTCC), which offers post-trade clearing and settlement services and processes $1.6 quadrillion worth of transactions annually. Forbes reports that the New Jersey-based DTCC has tasked Axoni with building it a blockchain-based distributed ledger to which it can migrate its Trade Information Warehouse.

In 2016, CCN reported that DTCC CEO Michael Bodson said that the advent of blockchain technology presented the firm with a “once-in-a-generation opportunity to modernize the post-trade environment.”

Previously, Axoni raised $18 million in a Series A funding round led by Wells Fargo and NEX Group, and the company has now raised a total of $55 million.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Josiah Wilmoth
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Incoming Goldman Sachs CEO David Solomon More Keen on Bitcoin Than Predecessor

Goldman Sachs announced today that David Solomon will be the company’s new CEO, shortly before the quarterly earnings call. Lloyd C. Blankfein will be stepping down as CEO, who began his tenure in 2006 and led the company through the dicey recession of the late 2000s.



Notably, Mr. Solomon is not the usual investment banker and investors expect him to shake up business as usual, according to the New York Times. He works as a DJ (under the name D.J. D-sol) in his free time, specializing in electronic dance music.

Solomon has stated that Goldman must “evolve its business and adapt to the environment,” if it is to stay competitive. Mr. Blankfein, the exiting CEO, was criticized before being slow to adapt the business.

Goldman Sachs smashed expectations for quarterly revenues on the earnings announcement today. Profits increased by 40% in Q2 alone ($2.47 billion), according to CNBC.

Building on Goldman’s Enthusiasm for Cryptocurrency

As CCN reported in June, Solomon showed interest in bitcoin and other cryptocurrency investments. The exiting CEO Mr. Blankfein’s interest in cryptocurrency has warmed through his tenure. On June 21, he went on the record saying that it’s “arrogant” to think cryptocurrency won’t be successful.

Currently, Goldman Sachs backs companies in the crypto space, such as the Circle, a parent company behind several large exchanges and startups. Based on Solomon’s comments, however, it’s safe to assume that the firm’s bullishness toward crypto and its technology will stay strong.

It should be kept in mind that Goldman Sachs denied that Mr. Blankfein would be resigning. Prior to the June interview with then-COO Solomon, the firm had also denied that they were creating a cryptocurrency trading desk. But as CCN reported, the firm had been working on a trading desk. As part of their trading desks and futures contracts, the firm has pushed to receive regulatory acceptance for cryptocurrency.

So far, it’s clear that Goldman Sachs plays their cards close to their chest. The announcements, therefore, come somewhat as a surprise, so cryptocurrency investors should keep abreast of the firm’s work and investments.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author Jack Mathis  
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