Goldman Sachs believes it offers custody services for cryptocurrency


New York's multinational investment bank, Goldman Sachs, takes another step forward in its wagering on the cryptocurrency market. The company, led by president and CEO Lloyd Blankfein, is reportedly considering a plan to offer custody for cryptocurrency funds. A big and credible institutional player who becomes a caretaker could be the news that the industry encrypted in the United States was waiting.

Goldman Sachs Becoming Cryptocurrency Guardian Could be a "Game Changer"

Cryptocurrency custody services are a foreign exchange game for the institutional market. San Francisco-based virtual currency exchange Coinbase, the largest operator in the United States with over 13 million users (data from November 2017) and $ 1 billion in revenue, was the first to offer custody services to institutional clients, which means that the company holds securities on behalf of the funds, thereby reducing the risk to customers.

Despite being a giant among its cryptocurrant peers, Coinbase is still a young company and fully invests in a single volatile asset class. Goldman Sachs, on the other hand, has a long history of success in the investment banking sector and is one of the most powerful influencers in the capital markets. Goldman Sachs' entry into the cryptocurrency market as a custodian could have a significant impact on the ecosystem as institutional players would most likely lower their concerns about losing their funds to hackers. The initiative could also shift primary brokerage service providers into the digital business class.

"In response to customer interest in various digital products, we are exploring the best way to serve them in this space. At this point, we have not reached a conclusion on the scope of our digital goods offering," he said. Bloomberg a spokesman for Goldman Sachs.

The investment bank has been regularly reporting on its efforts to penetrate the cryptocurrency market by creating "its most flexible version of the future, known as non-deliverable forward, which it will offer to customers."

Ari Paul, the co-founder of BlockTower, said the lack of trustworthy custody and a suite of institutional cryptocurrency products was the last barrier that prevented investors from entering the cryptocurrency market . The entry of Goldman Sachs as custodian could be the most necessary push for the financial market industry.

The Bloomberg report also added that at least three large Wall Street keepers are developing or exploring cryptocurrency custody services: Bank of New York Mellon Corp., JPMorgan Chase & Co. and Northern Trust Corp.

 Image from Shutterstock 
[ad_2]Source link