This Wall Street Giant Was Quite Busy Trading Cryptocurrencies in 2018

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This Wall Street Giant Was Quite Busy Trading Cryptocurrencies in 2018

This Wall Street Giant Was Quite Busy Trading Cryptocurrencies in 2018Circle, the cryptocurrency trading division of investment banking giant Goldman Sachs, handled $75 billion worth of digital currency transactions last year, a clear sign that Wall Street is becoming more and more interested in cryptocurrency investments. In a blog post summarizing activity during 2018, the company reported strong growth as it has expanded to serve more than eight million customers across 195 countries.

Trading Cryptocurrencies through Circle

When Circle started operating a few years ago, it mostly served as a Bitcoin trading desk for Goldman Sachs; these days, the company offers a range of services that include cryptocurrency exchanges, trading, settlements, and app development. It should be noted that Circle acquired the Poloniex digital currency exchange last year, a trading platform considered to be one of the most established in the market. Circle removed more than a dozen cryptocurrency tokens from Poloniex and added ten new ones, including its very own USDC, a digital currency that is pegged to the value of the United States dollar. Unlike other tokens pegged to the dollar, USDC presents a clear functionality since it is used to support the trading of digital currency pairs, thus making it easier for Investors to claim profits.

Circle has introduced new products that make cryptocurrency trading more appealing to retail investors; these products are called “collections,” and they consist of multiple tokens that can be held in a single group at reasonable minimums and without high fees. These collections are designed to be attractive to individuals, but Circle has important plans to entice institutional investors to participate in the cryptocurrency markets.

Investors Generate Value to Cryptocurrency Markets

Through its Circle Trade initiative, Goldman Sachs generated $24 billion worth of cryptocurrency trading volume from institutional investors in 2018. Some of these clients were hedge funds and venture capital firms, but Circle Invest wants to attract pension funds and major investment banking firms that operate on Wall Street. With the powerful connections of Goldman Sachs, this could become a reality in 2019.

For digital currency investors hoping for a rally in 2019, the growth of Circle Invest will be a step in the right direction. While some analysts believe that approval of a Bitcoin exchange-traded fund will signal the arrival of Wall Street to the cryptocurrency markets, a more significant event would be billions of dollars invested by Wall Street giants. Liquidity and high trading volumes are essential ingredients for a rally, and this is something that institutional investors can certainly contribute to cryptocurrency markets.

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