Goldman Sachs has hired a cryptocurrency expert as the VP of digital asset markets, securites to help its clients understand and navigate crypto.
Trader Justin Schmidt, who has previously worked for financial institutions including WorldQuant LLC, LMR Partners and Seven Eight Capital, has joined the company in an attempt to demystify crypto for its clients, reports Bloomberg.
Tiffany Galvin-Cohen, a spokeswoman for Goldman Sachs, said: “In response to client interest in various digital products, we are exploring how best to serve them in the space. We have not reached a conclusion on the scope of our digital asset offering.”
Back in February, the head of Goldman Sachs compared cryptocurrency to the internet ‘bubble’ of the late-90s, predicting that it will soon be a game of survival of the fittest for virtual coins.
“People seem to be trading cryptocurrencies as though they’re all going to survive, or at least maintain their value,” Steven Strongin, head of Goldman Sachs global investment research said. “The high correlation between the different cryptocurrencies worries me.
“If you believe this is a ‘few-winners tak-most’ situation, then the potential for retirement deprecation should be taken into account. And because of the lack of intrinsic value, the currencies that don’t survive will most likely trade to zero.”