Goldman Sachs Group could start offering custody for cryptocurrency funds, as people with knowledge on the matter explained. It will be possible for institutions and investors to reduce risks at the time of storing their coins.
Goldman Sachs Working on Custody Services
At the moment there is no official information about when the service will be launched to the market. This will be very important for the market because cryptocurrency investors will now have credible backing for crypto funds, helping new investors to bet on this asset class. With proper custody service it would be possible to start new ventures such as prime-brokerage services.
A spokesman for Goldman Sachs commented on the matter:
“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.”
This is a very important situation for the cryptocurrency world. In the future there will be more investors entering the crypto world through these new custodians.
Brian Kelly, an important fund manager, said that “after the bombshell that was [Bakkt] it’s only natural that the rest of the herd starts to move.”
Goldman Sachs has not yet set up a full-fledged desk to trade virtual currencies. At the beginning of the year the company decided to hire Justin Schmidt as head of its digital-asset markets.
Additionally, Goldman Sachs was among the first Wall Street firms that cleared Bitcoin futures that were offered by the Chicago Board Options Exchange (CBOE) and the Chicago Mercantile Exchange (CME).
There are other crypto-related companies that are offering custody services in the market. We can mention Coinbase, that launched a new service known as Coinbase Custody. Some days ago, the company announced that they are trying to add support a new range of assets.
As Coinbase explained:
“Coinbase Custody is exploring the addition of many existing and forthcoming crypto assets for storage only, and will be working to add them as quickly and safely as possible.”
More institutional investment will continue to provide both legitimacy for coins and channels for all kinds of investors to find their way into the cryptocurrency world, even without great technological know-how.