Wall Street is quietly moving out of the crypto market, Bloomberg reports. While the market has continued to be battered by news of fraud and imminent regulatory crackdowns, there was a time when it seemed like Wall Street had started to warm up to the rise of crypto assets.
Last year, when the crypto industry enjoyed what was probably the biggest bull run in its history, it seemed a lot of mainstream financial companies were also ready to join the bandwagon. Names like Goldman Sachs, Fidelity Investments and Barclays Bank Plc. were all affiliated with reports to open cryptocurrency divisions, and these speculations sent ripples around the financial industry.
Goldman Sachs’ Trading Desk Dreams
Goldman Sachs was one of the first Wall Street firms to show interest in Bitcoin futures, and rumors claimed that the firm was working on developing a seperate crypto trading desk. The investment bank partnered with Galaxy Digital and led a $57 million series B investment in custodian firm BitGo Holdings Inc., in a bid to offer custody services. Fast-forward to a year later, and Goldman is yet to offer crypto trading. The bank’s Bitcoin derivative product has not made much progress since it launched.
Citigroup Inc.- Digital Asset Receipts
New York-based Citigroup Inc. also reportedly developed a crypto-based product that could help asset management firms and hedge funds reduce the risk they get exposed to when they invest in crypto. The product, known as Digital Asset Receipt, was expected to provide crypto investors with an innovative means of keeping tabs on their investments and offer an additional layer of legitimacy and trust to the fledgling asset class.
Barclays Inc. and Its Crypto Trading Desk
Then we have London-based Barclays Inc.