Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
The launch of crypto-custody service by Goldman Sachs will help to instill more confidence among investors and may even drive big players to participate in the cryptocurrency market.
According to the report from Bloomberg on Monday, August 6, financial banking giant Goldman Sachs is considering the prospects of launching custody services for crypto investment funds. Citing multiple anonymous sources, the publication reported that the banking giant wants to create the storage to ultimately reduce the exposure of those crypto funds against growing external threats and online attacks.
The anonymous sources said that Goldman Sachs is currently mulling out several options and there is no definite timeline set for the launch. Such an offering coming from Goldman Sachs will certainly instill more confidence among investors and may even drive big players to participate in the cryptocurrency market. The anonymous sources said that the launch of these custody operations could also lead the banking giant to venture in other crypto-related services like brokerages and others.
Bloomberg cited a Goldman Sachs spokesperson saying:
“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.”
Moreover, Goldman Sachs is certainly not new to the crypto industry. In fact, it’s the first banking institution to clear Bitcoin futures contracts from CBOE and CME Group. Moreover, during December 2017, when the crypto mania was at its peak, the banking giant also announced the chances of launching its own cryptocurrency trading desk. However, those plans have not been finalized yet.
The banking giant has received several requests over time from institutional players and hedge funds to provide services. An interesting thing is that the news of launching a custody service from Goldman Sachs comes just after a month of Coinbase launching its own custody services. The Coinbase service is also a custodian solution for securely storing digital assets.
While explaining the Coinbase Custody service, the exchange writes:
“Coinbase Custody is a combination of Coinbase’s battle-tested cold storage for crypto assets, an institutional-grade broker-dealer and its reporting services, and a comprehensive client coverage program.”
A number of giants from the Wall Street are seen gearing up for several crypto-related services to attract new retails as well as institutional players. Last Saturday, CoinSpeaker reported about the announcement of Intercontinental Exchange (ICE), who owns the NYSE, about launching a new Bakkt platform in collaborations with giants like Microsoft.
The aim of ICE is to help crypto investors spend their digital assets easily in a safe and regulated environment thereby creating more liquidity in the crypto market.
“In bringing regulated, connected infrastructure together with institutional and consumer applications for digital assets, we aim to build confidence in the asset class on a global scale, consistent with our track record of bringing transparency and trust to previously unregulated markets.” said Jeffrey C. Sprecher, Founder, Chairman and CEO of Intercontinental Exchange upon the launch of the Bakkt platform.