From zero to hero: now banks want in on bitcoin
Bitcoin has surged more than 300% this year
New York — At first, bitcoin was a way to make payments without banks. Now, with more than $100bn stashed in digital currencies, banks are debating whether and how to get in on the action. Goldman Sachs CEO Lloyd Blankfein tweeted on Tuesday that his firm is examining the crypto-currency. Other global investment banks are looking into facilitating trades of bitcoin and other crypto-currencies, according to industry consultants. Bitcoin has surged more than 300% this year, drawing the attention of hedge funds and wealthy individuals. "They’re clearly receiving interest from their clients, both from retail investors and on the institutional side," said Axel Pierron, MD of bank consultant Opimas. "It’s highly volatile, it’s highly illiquid when you need to trade large volumes, so they see the opportunity for a new asset class which would require the capability of a broker-dealer." But bitcoin presents Wall Street with a conundrum: how do banks, that are required by law to prevent money...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.