Goldman Sachs Group Inc. is set to become the first major merchant bank to embrace cryptocurrencies, announcing Wednesday that it’s planning to launch a bitcoin trading desk.

First reported by The New York Times, the desk will involve the bank using its own money to trade with clients in a variety of contracts linked to the price of bitcoin. Presumably those clients would be hedge funds that deal in cryptocurrencies as well as bitcoin futures contracts such as those launched by CME Group Inc. and Cboe Global Markets Inc. in 2017.

Goldman reportedly will not initially be trading in bitcoin directly, but the bank is considering adding support for direct bitcoin trading if it can both obtain regulatory approval and “figure out how to deal with the additional risks associated with holding the virtual currency.”

Goldman’s decision to open a bitcoin desk comes steeped in irony, as Chief Executive Officer Lloyd Blankfein (pictured) said in November that bitcoin was a “vehicle for fraud” and his company had no interest in investing in it.

Five months later, the backflip of sorts is, to its credit, recognized by the bank. Executive Rana Yared told the Times that Goldman was clear-eyed about what it was getting itself into and that “I would not describe myself as a true believer who wakes up thinking Bitcoin will take over the world” and that “for almost every person involved, there has been personal skepticism brought to the table.” Noting that the decision was ultimately driven by the ability to produce profit, Yared added that “it resonates with us when a client says I want to hold bitcoin or bitcoin futures because I think it is an alternate store of value.”

The entry of Goldman Sachs, arguably the best-known U.S. merchant bank, into the bitcoin market, even in a limited form initially, is a massive confidence boost for the cryptocurrency business following a tumultuous start to the year. Bitcoin’s value has dropped by over half since it peaked at $19,343 Dec. 19.

The bank’s bitcoin desk is set to open in the next few weeks.

Picture: fortunelivemedia/Flickr