Goldman Sachs Set to Offer Crypto Custody Solution
Banking giant Goldman Sachs has revealed its plans to offer cryptocurrency custodial solutions.
Investment group Goldman Sachs is looking to offer its clients custody for cryptocurrency funds.
This is according to revelations made to Bloomberg by insiders. The sources noted that the investment bank is still not sure about its cryptocurrency plans.
Goldman Sachs settle for cryptocurrency custody
According to the report, Goldman Sachs which had previously teased with the idea of trading Bitcoin futures has now turned its attention to offering various cryptocurrency-related products. This they claim is in response to the interest of their clients.
A spokesman for the bank stated “In response to client interest in various digital products we are exploring how best to serve them in this space. At this point, we have not reached a conclusion on the scope of our digital asset offering.”
However, sources inside the bank explained things further to Bloomberg, revealing that Goldman is targeting cryptocurrency custody. Bloomberg wrote, “Having a custody operation in place could also lead to other ventures, including prime-brokerage services.”
The last couple of days has seen large corporations make crucial announcements about their plans for the cryptocurrency market.
Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE) announced it is working on Bakkt, a regulated digital asset ecosystem, which would be ready by November. The company is partnering with other large companies including Microsoft and Starbucks.
Another stock exchange, NASDAQ is reportedly set to enter the cryptocurrency space.
Crypto mania a risk to stable 2018 outlook
Goldman Sachs’s feelings on cryptocurrency have been mixed. Just a few days ago, the bank listed that Bitcoin and unsteady cryptocurrency mania as one of the six factors that threaten their 2018 market outlook. This was contained in their July 2018 report.
According to their report, cryptocurrency prices might decline even further in the future since they believe they do fulfill any of the three traditional roles of currency.
The bank’s Chief investment officer Sharmin Mossavar-Rahmani wrote that they haven’t changed their views on cryptocurrencies not being able to retain value in the current state. The bank believes that crypto is neither a medium of exchange, nor a unit of measurement, nor a store of value.
Their skeptical views on cryptocurrencies will not stop them from entering the market though. The bank revealed earlier in May that would start trading bitcoin futures launched by Cboe and CME late last year. Back then, Goldman said it would be using its own money to trade bitcoin futures on behalf of its clients.
Other large financial firms considering crypto
Larry Fink, CEO of BlackRock, the world’s largest asset manager claimed that he did not see large interest among his clients in exposure to cryptocurrency. The firm did, however, set up a working group to look into digital assets and blockchain, with sources claiming Blackrock is looking at Bitcoin futures.
Other large financial firms that are already ventured into the cryptocurrency market include CME Group, the CBOE, Cohen Private Ventures, and others.