Goldman Sachs Goes from Bitcoin-has-No-Value to Considering Crypto-Custody Services

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The Wall Street giant and the leading investment bank Goldman Sachs is currently in discussing offering custody services for the crypto funds. Just a few days back, a report by the firm has stated that Bitcoin doesn’t have much value and is only going to decline in the future.

Wall Street giant Goldman Sachs considering offering crypto-custody services

Goldman Sachs, one of the largest investment bank in the world is planning to offer custody services for the cryptocurrency funds that will further boost the already expanding crypto world.

Just a few days back, the report by Goldman Sachs has stated that Bitcoin is only going to decline in the future.

Now, as per the latest report by Bloomberg, the people with the knowledge of the matter, the investment bank, and financial services provider is planning to offer custody services. Through this, the bank will reduce its clients’ risks such as losing funds due to theft or hack, by holding the “securities” i.e. cryptocurrencies on behalf of clients’ funds. 

However, there is no timeline set as for when the services will be rolled out, the company is currently holding discussions for the same.

Goldman Sachs is a credible name in the financial world that can propel the institutional investors from the Wall Street to get into the crypto space. By providing reliable backing for crypto funds, it will pave the way for an influx of investors. Bloomberg further reported,

“Having a custody operation in place could also lead to other ventures, including prime-brokerage services.”

Also, read: Sentimental Analysis for Bitcoin, Ethereum, Ripple, EOS, Stellar

From Bitcoin has no value to going pro crypto

This potential step is in accordance with the rising interest in cryptocurrencies as stated by the Goldman Sachs spokesman,

“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.”

Recently, the largest Swiss bank Northern Trust Corporation announced that they are introducing custody services for the crypto funds. Reportedly, JPMorgan Chase & Co. and Bank of New York Mellon Corp. are either exploring or working on crypto-custody services. Moreover, in May, Nomura Holdings Inc also joined a custody consortium.

Now, the Wall Street giant Goldman Sachs has joined these ranks and taken another step towards crypto after announcing that they have been exploring crypto trades beyond derivatives.

David Solomon, the new CEO of Goldman Sachs who is keen on Bitcoin and cryptos have stated in June that

“We are clearing some futures around Bitcoin, talking about doing some other activities there, but it’s going very cautiously. We’re listening to our clients and trying to help our clients as they’re exploring those things too.”

The firm is already helping its clients deal in bitcoin futures and in May announced that it is setting up a trading desk for crypto products.

Partyush Goyal

A computer science engineer, I have been adamantly following the blockchain and cryptocurrency industry for the past 2 years. A crypto enthusiast and hardcore blockchain follower. Reach out to him at pratyush@coingape.com

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