David Solomon has served as President and Co-COO at Goldman Sachs. Now, he takes on his new role as Chief Executive Officer (CEO) of the company. His opinion on cryptocurrencies has been bullish, making the new role compatible with Goldman’s plan to add new bitcoin and other crypto services to its portfolio.
While Goldman Sachs already offers publicly-traded cryptocurrency derivatives to its clients in the form of Bitcoin futures, Solomon recognizes the need for the company to “evolve its business and adapt to the environment.”
— Goldman Sachs (@GoldmanSachs) November 3, 2017
Part of Solomon’s plan in his new role as CEO is to begin by listening to the bank’s clients and their wants and needs. Unlike BlackRock, which is remaining tight-lipped about its digital currency activities and its customers’ requests, Goldman appears to be taking the opposite approach. In terms of marketing strategy, this move might attract forward-thinking investors to the firm.
The previous CEO of Goldman Sachs, Lloyd Blankfein served for 12 years. While not quite as bullish as Solomon in his oratory, Blankfein has had a more positive outlook on the industry than his peers. While Jamie Dimon called Bitcoin a fraud, only to retract his statement several months later, Blankfein at least said that he did not want to dismiss it as an investment opportunity. Instead, Blankfein admitted that he simply wasn’t familiar with the technology, and as such, he was uncomfortable with making an assertive statement about its viability, as “that’s too arrogant.”
Solomon is much closer to being a technocrat than his predecessor. In his off time, he’s an Electronic Dance Music (EDM) DJ who performs under the moniker, DJ D-Sol. While his musical tastes are not the end-all determining factor in his ability to understand all forms of technology, the fact that he enjoys playing with such digital toys in his personal time is enough to suggest that he has a high level of interest in technology, and this may be transferred to his worldview on shaping the banking industry for the future.
It’s possible that the positive news of Solomon’s appointment could give Bitcoin and other cryptocurrencies a bump, contributing to its upward trend in recent days, in conjunction with the recent news about BlackRock.
Goldman Sachs reported a 44% increase in Q2 profits, with $5.98 in earnings per common share. We are not financial advisors, and you should seek the advice of a professional if you’re thinking about investing. However, it’s possible that this news may also be reflected in the GS stock price, currently trading at $228 after spiking to over $231 on July 17, according to Yahoo Finance.
With such news coming out of an investment giant like Goldman Sachs, we may see other institutions rushing to catch up. Such activity could be a major driver for institutional money to flow into the crypto market. While this wasn’t the original intent behind the development of Bitcoin, it undoubtedly makes crypto more mainstream, and this can only be good news for people who already buy into the model, as it means that there is a possibility for regulatory relief and more market stability.