Goldman Hires Head Cryptocurrency Trader

Four months after we reported that Goldman Sachs is preparing to launch a cryptocurrency trading desk, an announcement which coincided with bitcoin trading near its all time highs just shy of $20,000, the bank announced that in its first official expansion to this (r)evolutionary new venture, Goldman has hired Justin Schmidt as head of digital asset markets to help it navigate client interest in trading bitcoin and other crypto assets, and to allow clients gain exposure to cryptocurrencies.

Schmidt, 38, joined the securities division in New York as a VP and head of digital asset markets, said bank spokeswoman Tiffany Galvin-Cohen. He previously worked at quantitative trading firms Seven Eight Capital LLC and WorldQuant LLC and has computer science degrees from the Massachusetts Institute of Technology, according to his LinkedIn profile.

“In response to client interest in various digital products, we are exploring how best to serve them in the space,” Tiffany Galvin, a spokeswoman, said in a statement Friday. “At this point, we have not reached a conclusion on the scope of our digital asset offering.”

As Tearsheet notes, it’s telling that Goldman, the bank with a reputation for being one step ahead of its peers, is putting money and resources behind someone dedicated to helping it explore “the range of options” it has to help clients play with crypto if they want to.

Goldman's growing involvement - and investment in - the crypto side of the business is notable as it is squarely opposite the posture of most of the remaining Wall Street firms, most famously JPMorgan, who last summer called bitcoin a fraud, and threatened any JPM trader caught buying or selling the digital currency with immediate termination.

As Tearsheet adds, Goldman’s current involvement in crypto assets is as a facilitator rather than a market maker, i.e., offering clients exposure to bitcoin through the bitcoin futures contracts offered on the Cboe Global Markets and CME Group exchanges. It acts in an agent-only capacity, serving as a middleman to allow clients to get access to crypto on the exchanges by placing an order with Goldman Sachs, a member of the exchanges. It is not active on any cryptocurrency exchanges, Galvin confirmed.

Goldman was one of the earlier members of these exchanges to agree to do that, but its offering as it relates to bitcoin remains limited, she added.

In other words, Goldman is not trading bitcoin on a prop basis. Yet.

Goldman trading desk

Last week, UK bank Barclays said last week that it’s similarly monitoring developments in the cryptocurrency space and gauging clients’ interest in the bank launching a crypto trading desk (ironically just days after its "researchers" said the Bitcoin bubble has peaked and that it behaves like a "virus.")

It’s likely more and more banks will begin touting the ability to give clients access to crypto trading, without having to sell contracts themselves — at least until client expectation of this type of trading reaches a critical mass or the industry gets more clarity from regulators.

One thing is certain: increased institutional participation in cryptocurrencies, both on the flow and prop side, assures that regulatory approval, explicit or tacit, is just a matter of time.

Comments

hedgeless_horseman StackShinyStuff Mon, 04/23/2018 - 10:34 Permalink

 

He previously worked at quantitative trading firms Seven Eight Capital LLC and WorldQuant LLC

Maybe he took my advice?

hedgeless_horseman's E-Z Internet Guide to Crypto Mining for Fun, Freedom, and Fungibility

Make sure to update your resume tonight to include the terms, "LINUX programmer, blockchain, crypto, and expert."

https://www.zerohedge.com/news/2018-03-07/hedgelesshorsemans-e-z-intern…

In reply to by StackShinyStuff

pods hedgeless_horseman Mon, 04/23/2018 - 12:27 Permalink

Finally got the Death Star up and running.  Well, 3 of 4 rigs. The fourth is locking up in the miner. Prolly yet another Windows conflict.  Oh well, at least I am getting really familiar with Win 10.  Nice OS when you shut down all the junk/spying. Mrs. pods now has her garage back to park and now I can focus more on upkeep than construction.  And I found out that indeed you can bite off more than you can chew and still get it done.

Just have to watch the power meter spin like Xmas Vacation now.

pods

In reply to by hedgeless_horseman

lookslikecraptome Bitchface-KILLAH Mon, 04/23/2018 - 12:30 Permalink

Here is y I like this thread. Lester gets on and says some reasonable shit. Like what currency loses 65% of its value in 90 days. Legit question. He uses BOLD FACE, i guess that pisses people off. He asks the same question daily. It is still a legit question. Must piss people off. 

 

Then we have "BITCH" FACE KILLAH arguing with Nature Boy Woooo  about which is the better crypto. 

Gotta say it BITCHfk, my money is on nature boy. He can drop the snark and get with the real analyses when he chooses to do so. 

Besides that he is the only one who answered the question, Is the dude who sold his house for BTC in December happy with his store of value and is he off suicide watch yet?

GOOD ON YOU WOOOO!!!!!!!!!

And then for shits and grins, Goldman is opening a crypto desk to further fuck more people. 

PSSSST    I told the coineratti a bit ago their libertarian dreams where trash and that the big boys will own the crypto world. 

AS B4   i do not hate crypto

In reply to by Bitchface-KILLAH

tr123 lookslikecraptome Mon, 04/23/2018 - 14:48 Permalink

Venezuelan Bolivar crashed 9898989% in less than a year. I heard a similar thing happened to the German Mark a hundred years ago. Germany is an important country, right? Steve Hanke does good work on the history of hyperinflations, he can mention about 30 more.

What makes you so sure that the same cannot happen to the Dollar or the Yen? Call it a Black Swan event or whatever you fancy, it's that fat tail possibility that becomes more likely each year, not less. On the meantime, you can enjoy owning a depreciating asset. 

To be fair, cryptos are too volatile to hold as a unit of account. My theory on why that's so is that not enough of the world is invested in it. An abundance of money entering drives up the price spectacularly, creating manias that turn to panics when the big profit takers cash out leaving the masses who bought the top underwater. Takes months to unwind then eventually interest picks up again and it repeats. Maybe when the # of people invested approaches something in the ballpark of saturation the margins will narrow to something more normal, as in within 20% like most fiat currencies today. I predict that will take years tho, and that this will remain a purely speculative field for some time.

 

In reply to by lookslikecraptome

Akoniti lester1 Mon, 04/23/2018 - 18:38 Permalink

I'm so up it's hard to see the ground from up here man :)

If you sold late last year, then re-invested on on the deep dips early this year, you're way up right now.

Cryptos are just a market like anything else. They go up, they go down. If you've got a strong steady hand and work the rollercoast there're oodles of profits to be made.

In reply to by lester1

lester1 Twncpcone Mon, 04/23/2018 - 10:34 Permalink

Yes!!! Let these wealthy assholes fully enbrace the crypto Ponzi scheme with zero intristic value. Tie up your remaining liquidity. They will all be wiped out. Especially when the market crashes and they all try and cash out at the same time. 

Do it Blankfein!!

 

Millionaires will turn homeless overnight.

In reply to by Twncpcone