Goldman Sachs has a complicated relationship with cryptocurrency. Its recent mid-year economic report predicted further price decline for Bitcoin and expressed concern that price volatility in cryptocurrency markets could have knock-on effects in the rest of the economy.
On the other hand, it was one of the first of the Wall Street giants to clear the Bitcoin futures contracts listed on the CME and Cboe exchanges. Now client demand has led the firm to consider another way of increasing its involvement in the cryptocurrency world: offering a way for funds to safely store their cryptocurrency holdings.
According to a report from Bloomberg, the merchant bank is mulling over a plan to offer its institutional clients a way to store their digital assets. Rather than those institutions having to store their cryptocurrencies holdings themselves, Goldman Sachs could do it for them.
Security concerns are one of the main reasons holding back crypto-assets from more widespread adoption. The entry of an institution as highly regarded as Goldman Sachs into custodial offerings could greatly change the willingness of other parties to become involved in the space. It also paves the way for the bank to offer future crypto services such as prime-brokerage.
“Client interest” in digital assets
The Goldman Sachs sources spoke to the news outlet on the condition of anonymity and there is no timeline for when such a service might be made available.
A spokesman for Goldmans did not deny the rumours but would give no further details. They said that as a response to “client interest in various digital products” the company was “exploring how best to serve [its clients] in this space.” However, “at this point we have not reached a conclusion on the scope of our digital asset offering.”
Image From Shutterstock