Apple and Goldman Sachs have decided to abandon their plans to release a futures trading app, according to a CNBC report on September 19, which cited unnamed sources familiar with the matter.
Initially slated for a 2022 launch, the project was paused last year amid worsening economic conditions, characterized by rising interest rates and inflation, which discouraged investors from engaging with high-risk assets. Insiders indicated that the infrastructure for the project was “largely complete” and could be rolled out if Apple decides to proceed. The involvement of cryptocurrency futures trading in the app remains uncertain.
During the pandemic, Apple expanded its portfolio to include financial services for its U.S. clientele, collaborating with Goldman Sachs for these endeavors. Their first joint venture was a credit card launched in 2019. Earlier this year, Apple introduced a “buy now, pay later” feature, which allows users to divide purchases into four interest-free installments. In April, the company unveiled another Goldman-backed financial product: a savings account offering a 4.15% annual percentage yield. Despite amassing over $10 billion in user deposits, the partnership has had its share of difficulties, including Goldman Sachs reportedly incurring a $350 average customer acquisition cost for managing Apple’s credit card.
Apple’s foray into financial services is part of a larger trend, as illustrated by Elon Musk’s recent initiatives. After purchasing X (previously known as Twitter), Musk announced plans to transform the social media platform into an “everything app,” offering financial services. Musk stated that users will soon be able to manage their “entire financial world” within the X platform.
In line with Musk’s plans, Rhode Island regulators approved a currency transmitter license for X on August 30, paving the way for the company’s expansion into financial services. This license is mandatory for companies that handle financial transactions for users, encompassing both fiat and digital currencies. Following this approval, X is now authorized to hold, transfer, and trade digital assets. Additional money transmitter licenses have also been granted to X in several other U.S. states including Arizona, Georgia, Maryland, Michigan, Mississippi, Missouri, and New Hampshire.