Goldman Sachs is Also Sweating

Goldman Sachs CEO Lloyd Blankfein might say that the investment banking giant does not have a “Bitcoin strategy,” but the company is now admitting that cryptocurrencies pose a business risk to the firm.

The firm made this disclosure in a document dated Feb. 26 and filed with the US Securities Exchange Commission (SEC), explaining that its investments in blockchain- and cryptocurrency-associated startups — as well as its decision to facilitate Bitcoin futures trading for its brokerage clients — could adversely affect Goldman Sachs if weaknesses are found in the underlying blockchain protocols.

Indeed, despite Blankfein’s sometimes-hostile comments on Bitcoin, the firm has quietly built a portfolio that includes startups operating in the blockchain space.

Circle, to which it provided early-stage funding, operates a high-volume cryptocurrency trading desk and recently announced that it had acquired Poloniex, one of the larger cryptocurrency exchanges.


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