Goldman Sachs COO John Waldron Poised for Leadership Role

Goldman Sachs COO John Waldron may lead the investment banking giant, emphasizing his clients’ strong interest in Bitcoin (BTC).

Waldron is developing BTC-related services, aiming to leverage a new regulatory environment that relaxes restrictions on digital asset-supporting financial institutions. He envisions Goldman Sachs engaging more deeply in this sector:

• The bank has recently revived its digital asset trading desk.
• In early March, Waldron’s crypto trading team began transacting in BTC futures and non-deliverable forwards.

Additionally, sources indicate that Goldman Sachs is exploring other blockchain-based initiatives and central bank digital currencies (CBDCs).

Waldron is regarded as a leading candidate to succeed David Solomon as CEO. He previously declined a lucrative offer to join Apollo Global Management to remain at Goldman Sachs, receiving an $80 million retention bonus, a seat on the board, and increased access to the bank’s private plane.

“It’s John Waldron’s to lose,” commented Wells Fargo’s Mike Mayo regarding his possible ascension.

Waldron’s Ambitions Amid Past Challenges

Goldman Sachs has faced difficulties in new ventures, including a prior attempt at retail banking that resulted in $3 billion in pre-tax losses before the bank exited in 2022. The firm has also dealt with the fallout from the Malaysian corruption scandal, 1Malaysia Development Berhad (1MDB), which culminated in a $3.9 billion settlement and pay cuts for Solomon and Waldron.

Given past challenges, Waldron is highly aware of regulatory compliance as the bank looks to enter a new industry. In 2021, he mentioned ongoing dialogues with regulators and central banks on integrating “digital money” into compliant banking frameworks.

Even when he avoids naming specific digital assets, Waldron has engaged in discussions about Alternative Asset Management with students and has shared “contrarian positions” with senior executives of firms like Soros Fund Management.