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Bank says it has no current plans to trade digital currencies
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Bitcoin has halved in value since December peak of $19,000
Barclays Plc has been gauging clients’ interest in the British bank starting a cryptocurrency trading desk, potentially joining Goldman Sachs Group Inc. in pioneering a new business on Wall Street, according to people with knowledge of the matter.
Barclays has so far only done a preliminary assessment of demand and feasibility, said the people, who asked not to be identified because the information isn’t public. The bank said Monday it currently has no concrete plans to start such an operation.
“We constantly monitor developments in the digital currency space and will continue to have a dialog with our clients on their needs and intentions in this market,” spokesman Andrew Smith said in an emailed statement.
A crypto trading desk would require approval from investment bank boss Tim Throsby, and potentially Chief Executive Officer Jes Staley, given the novelty of the asset class, risk and compliance requirements, according to one of the people. No other big European investment bank is known to be building such a desk.
Staley has made building up Barclays’s investment bank the centerpiece of his strategy to revive earnings. In September, Throsby vowed to reignite the unit’s “commercial zeal” and authorized the transfer of billions of dollars of capital to higher-risk trading activities from vanilla corporate lending. Bitcoin — infamous for its wild price swings after rising to a peak of more than $19,000 in December before halving in value within four months — could fit the bill.
Read more at: Bloomberg
