Barclays to Hold On Cryptocurrency Trading
October 16, 2018 4:30 pm
Chris Tyrer, Barclays’ former global head of commodities is leading the project called “Digital Assets Project.” The project also includes Marvin Barth, head of the forex and emerging markets macro strategy, Lee Braine, technology officer, and digital assets consultant, Matthieu Jobbe Duval.
Digital Assets Project is focused on whether digital currencies are more than just enthusiasm. It is designed to measure a clients’ interest in crypto products. It also evaluates the infrastructure a bank should invest in to offer related products and services. A Barclays’ spokesperson said that the bank is planning to open a cryptocurrency trading desk.
Barclays has recently applied a patent for a blockchain system. This system would allow banks or other financial intermediaries to create cryptocurrency units. The reason behind the suspension of this digital asset project is yet to be revealed. Reports claim that this could be due to the decline in cryptocurrency market value.
Rumors say that Barclays has been planning for a cryptocurrency trading desk back since April 2018. This plan was supposed to be carried out in partnership with Goldman Sachs. The story gained mainstream attention when Barclays created its Digital Asset Team back in August.
Traditional finance companies such as Goldman Sachs, Barclays, JPMorgan are competing against each other. These companies are the part of a race to open the first cryptocurrency trading desk that would cater to institutional investors.
In February 2017, Barclays stopped its customers from purchasing cryptocurrencies using credit cards. A spokesperson of Barclays London stated that the bank is reviewing its policy on a country-by-country basis. The spokesperson included that the ban is to protect the customers from running huge bills that could be a result of purchasing cryptocurrencies via credit card. The U.K. based multinational bank and financial services provider Barclays has announced that it is putting the launch of its cryptocurrency trading desk on hold.