Apple and Goldman Sachs Halt Futures Trading App amid Market Turbulence; Tech Sector Expands to Finance
Summary:
Apple and Goldman Sachs have dropped plans for a futures trading app due to unstable economic conditions. The app, largely built and ready for launch, remains in limbo. This setback doesn't hinder Apple's ventures into financial services, having launched a credit card and a 'buy now, pay later' feature with Goldman Sachs previously. As tech giants shift towards financial services, Elon Musk's social media platform X secured regulatory approval to include financial services, marking progress in this trend.
Amidst volatile economic conditions, Apple and Goldman Sachs have decided to pull back from their plans to introduce a future trading app, as reported by CNBC on September 19, based on insider information. The launch was initially planned for 2022 but due to unfavorable financial climate marked by rising interest rates and increasing inflation, interest in risky assets dwindled leading to the plan being put on hold. Sources reveal that the framework for the project has been largely established and set for deployment should Apple decide to continue with the planned roll-out. It remains ambiguous whether the inclusion of crypto futures trading in the app was being considered by the two entities.
In their bid to broaden their portfolio during the pandemic, Apple decided to venture into the financial sector to provide financial solutions for its American customers. This saw them partnering up with Goldman Sachs to further their pursuit. In view of these developments, observations state that major technological corporations seem to be homing in on financial tech products.
Apple initially introduced a credit card in 2019, in cooperation with Goldman Sachs. The tech behemoth also introduced its 'buy now, pay later' feature earlier this year, which permitted consumers to divide their purchases into four equal, interest-free payments. In April, the firm introduced another product endorsed by Goldman Sachs - a savings account yielding a 4.15% annual percentage. Recent reports suggest deposits in Apple's savings account had hit the $10 billion mark. However, the venture didn't come without its share of troubles, with Goldman Sachs allegedly encountering financial challenges.
Apple's foray into the world of financial services isn't a solitary initiative. With Elon Musk's acquisition of X (previously Twitter), he revealed plans to transform the social network into a comprehensive app that includes financial services. Musk envisages users being able to maintain their entire financial landscape on X. Regulatory approval from Rhode Island recently marked a leap forward for the company's financial services ambitions. Possessing a currency transmitter license now allows X to retain, transfer, and exchange digital currencies. X was also granted money transmitter licenses in a number of other states.
Published At
9/20/2023 8:30:00 PM
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