Apple and Goldman Sachs Planned a Stock Trading Feature for iPhones
Amidst the global stock market frenzy in 2020, Apple and Goldman Sachs were working together on an innovative investing feature, according to insiders. This project aimed to allow users to buy and sell stocks through Apple’s ecosystem but was ultimately put on hold due to concerns about market volatility. The uncertainty caused by rising interest rates and inflation led Apple and Goldman Sachs to reassess their strategy. Stocks like Tesla and even blue-chip companies like Apple experienced significant declines in 2022. Fearing potential backlash from users experiencing losses, Apple shifted its focus towards launching savings accounts instead, which benefit from higher interest rates.
The Uncertain Fate of the Stock Trading Project
It is unclear what will happen to the stock trading project, especially considering Goldman Sachs’ recent decision to withdraw from most consumer banking initiatives. However, sources suggest that the necessary infrastructure for the feature already exists if Apple chooses to revisit the concept.
The partnership between Apple and Goldman Sachs has already produced notable financial products such as the Apple Card, buy now, pay later (BNPL) loans, and a high-yield savings account. The savings account alone attracted over $10 billion in user deposits since its announcement last month.
While specific details about the stock trading feature remain undisclosed, one possibility is that iPhone users could invest their surplus cash directly into Apple shares.
Would Apple Have Allowed Crypto Trading?
If Apple had entered the stock trading arena, it would have faced competition from established platforms like Robinhood, SoFi, Square, Charles Schwab, and Morgan Stanley’s E-Trade. Many of these platforms also allow users to trade cryptocurrencies.
It is uncertain whether Apple would have offered cryptocurrency trading, as the company had concerns about stock market volatility, which would likely have been amplified in the digital asset market. Bitcoin and Ethereum, the closest equivalents to “blue chip” crypto assets, experienced significant declines in 2022.
Moreover, offering cryptocurrency trading could have attracted regulatory scrutiny. The Securities and Exchange Commission (SEC) has already taken enforcement actions against over 20 crypto firms this year, including Coinbase and Binance, for listing crypto asset securities on their platforms.
Apple has previously faced issues with authorities regarding its App Store practices and concerns about stock trading apps potentially gamifying the markets.
Other tech giants, such as Elon Musk’s X (formerly Twitter), have explored similar ventures. Musk partnered with eToro to enable stock and cryptocurrency purchases. PayPal also considered stock trading but shifted its focus back to its core e-commerce business. Recently, PayPal introduced its PYUSD stablecoin for trading on Venmo.
Hot Take: Apple’s Decision Highlights Caution Towards Market Volatility
Apple’s decision to shelve the stock trading feature demonstrates the company’s cautious approach towards market volatility and potential user losses. Despite the popularity of stock trading apps and the rise of cryptocurrencies, Apple prioritized launching savings accounts instead. This move aligns with their strategy of providing products that benefit from higher interest rates. While the fate of the stock trading project remains uncertain, Apple’s partnership with Goldman Sachs has already yielded successful financial products, indicating their commitment to innovative financial services. By focusing on savings accounts, Apple ensures a safer investment option for its users while leaving open the possibility of revisiting stock trading in the future.
By
By
By