Goldman Sachs Considers Crypto as Own Risk

Investment banking giant has cited its connection to cryptocurrencies and blockchain as a potential business risk
27 February 2018   511

Investment bank Goldman Sachs assumes that its involvement in the sphere of crypto-currency may cause certain risks. This is written by CoinDesk.

According to the report for 2017 fiscal year, published on February 26, Goldman Sachs believes that his business can be influenced by the fact that he works with clients and invests money in companies related to the crypto-currency sector. Among other things, the bank provides access to bitcoin futures for a certain group of its customers and has a stake in the Circle start-up, which on Monday became the owner of the Poloniex crypto currency exchange.

We may be, or may become, exposed to risks related to distributed ledger technology through our facilitation of clients' activities involving financial products linked to distributed ledger technology, such as blockchain or cryptocurrencies, our investments in companies that seek to develop platforms based on distributed ledger technology, and the use of distributed ledger technology by third-party vendors, clients, counterparties, clearing houses and other financial intermediaries.
 

Goldman Sachs Report

Although Goldman Sachs does not speak directly about this, these fears may also explain the fact that to this day the bank is not in a hurry to provide its clients with access to a wider range of tools for working with cryptocurrencies.

Goldman Sachs & JPMorgan to Invest $32M in Axoni

Well-known companies such as Andreessen Horowitz, Citi, JP Morgan, Wells Fargo, Y Combinator and Digital Currency Group also took part in the investment round
15 August 2018   283

Axoni blockchain start-up raised $ 32 million in the series B financing round, led by Goldman Sachs and Nyca Partners.

Well-known companies such as Andreessen Horowitz, Citi, JP Morgan, Wells Fargo, Y Combinator and Digital Currency Group also took part in the investment round. As a result of the campaign, the total volume of venture investments in Axoni was $ 55 million.

According to representatives of the New York company, the funds raised will be used to continue the development of data synchronization technology and the Ethereum-compatible language of the AxLang smart contracts. Also, the money will be spent on creating new products based on an audited distributed network called AxCore.

Axoni CEO Greg Svehi said that his startup is seeking to increase the number of companies using blockchain based solutions based on Axoni developments.

We are pleased to be part of Axoni’s journey since co-leading their Series A financing back in December 2016, and we are excited to see their progress made to date. The adoption of distributed ledger protocols in capital markets resembles the early days of adopting TCP/IP for distributed enterprise applications. We continue to be impressed with Axoni’s ability to facilitate such adoption by identifying use cases that could benefit from blockchain technology.
 

C. Thomas Richardson

Head of Market Structure and Electronic Trading Services, Wells Fargo Securities

In the spring of last year, the startup received $ 20 million from Citi, the banking giant, a year earlier - $ 18 million from a number of large financial institutions and venture investors.