Apple and Goldman Sachs scrapped plans to launch an app for futures trading, CNBC reported on Sept. 19, citing people familiar with the plans.
The project had an initial rollout date for 2022, but it was put on hold last year as economic conditions deteriorated, with a rise in interest rates and inflation pressures driving investors away from risky assets.
According to the sources, the project infrastructure was “mostly built” and is ready for launch if Apple proceeds with its original plan. Additionally, it is unclear whether Goldman and Apple intended to include crypto futures trading in the application.
During the pandemic, Apple sought to diversify its business and offer financial solutions for clients in the United States, partnering with Goldman Sachs to develop its initiatives.
Looks like all big technology guys are tying back to a Fin-tech product. https://t.co/lYWowJ14np
— Githinji Mwai (@GithinjiMwai) September 13, 2023
In collaboration with the bank, Apple first launched a credit card in 2019. Earlier this year, the tech giant released its buy now, pay later feature, allowing users to split purchases into four equal payments without charging any interest.
A few weeks later, in April, the company announced another Goldman Sachs-backed product, a savings account providing a 4.15% annual percentage yield. According to a recent report, user deposits in Apple’s savings account had topped $10 billion. However, the partnership was not without its challenges. Goldman Sachs reportedly suffered a financial setback from managing Apple’s credit card, with an average customer acquisition cost of $350.
Apple’s venture into financial services isn’t an isolated move. After acquiring X (formerly Twitter), Elon Musk disclosed plans to make the social network an “everything app,” incorporating financial services on the platform. According to Musk, in the coming months, users will be able to conduct their “entire financial world” on X.
Musk’s plans appear to be moving forward. Rhode Island regulators granted X a currency transmitter license on Aug. 30, marking a step forward for the company’s venture into financial services. The license is required for companies providing financial services on behalf of users, which includes both fiat and crypto assets. As a result of the approval, X will be able to custody, transfer and exchange digital currencies. Money transmitter licenses were also issued to X in Arizona, Georgia, Maryland, Michigan, Mississippi, Missouri and New Hampshire.
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