Goldman Sachs Could be Looking to Offer a Cryptocurrency Custody Service for Crypto Funds
Goldman Sachs is reportedly considering plans to offer a custody service for cryptocurrency funds. The bank will offer the service to reduce the risk for clients from hacks and theft. Unlike an exchange, clients would not be able to use the service to sell Bitcoin but for storage of the digital asset much like a bank.
Goldman Sachs are still developing this service and have not provided a timeline for when it will become available. We can expect one of the largest banks in the world to progress quickly into the space considering the volume that’s traded in cryptocurrencies. There is a need for more institutes to offer services to sell crypto.
When an institution such as Goldman Sachs considers offering crypto services, it brings credibility to the backing of crypto funds. Having a strong pioneer could induce more investors to expose themselves to cryptocurrencies.
Back in May, Nomura Holdings Inc. founded a custody consortium called Komainu. The venture was established to overcome the barriers relating to institutional investment in digital assets with new services, standards and best practices. It is reported that three wall street custodians, Bank of New York Mellon Corp., JPMorgan Chase & Co. and Northern Trust Corp. are either developing a crypto-custody service or looking into it.
Goldmans Sachs has been cautiously looking to enter the cryptocurrency market and still has a way to go before it does. They have yet to set up their cryptocurrency trading desk; preventing clients selling crypto through them.
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