Goldman Sachs considering custody offerings for cryptocurrencies

06 Aug, 2018
by David Robb
News
Goldman Sachs considering custody offerings for cryptocurrencies

Goldman Sachs is currently discussing plans to offer custody of cryptocurrency funds to interested clients. This would mean that investors could benefit from crypto without the risks involved with having direct custody of cryptos.

This kind of offering would be a serious boost to the crypto market, as it would encourage investment from established institutions and more traditional funds. Other Wall Street giants such as Bank of New York Mellon Corp., JPMorgan Chase & Co. and Northern Trust Corp. have also considered crypto custody offerings.

"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", a spokesman for Goldman Sachs told Bloomberg.

Security risks related to holding cryptocurrency are currently one of the main obstacles preventing more serious investment, with the many high-profile hacks of recent years dominating mainstream coverage of crypto. This is why regulatory decisions on crypto ETFs have been so significant, as they could also offer indirect ownership to more cautious investors.

Read more: Expert opinions: is an ETF crucial for crypto?; VanEck letter to SEC on ETF focuses on potential BTC worries

This news represents a change in direction for Goldman Sachs, which recently suggested that Bitcoin and the crypto market was "not coming back".

Read more: Goldman Sachs claims Bitcoin will continue to decline, bashes cryptocurrencies

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