Goldman Sachs Group Inc (NYSE:GS) Planning a Custody Service for Crypto Funds

According to anonymous reports, Goldman Sachs Group Inc (NYSE:GS) might soon come up with a new custody service for crypto funds, moving beyond BTC futures.

Crypto funds custody service rumors not denied

Goldman Sachs is one of the biggest and best-known banks around the world. It was skeptical of cryptocurrencies until recently, but the new management has said to have brought a new attitude towards digital currencies as well. Now, sources familiar with bank’s plans claim that Goldman might soon come up with a new custody service for crypto funds. Unfortunately, the bank’s spokesperson did not confirm this, but the rumors were not denied either.

Establishing custody service like this would represent a very big achievement for the crypto world. Securities would be held by the bank and on behalf of the funds. That would increase the clients’ trust, and lower the risks of them trying to find protection from losing their funds in rogue attacks.

As for Goldman’s spokesman, he was only willing to say that the bank continues to explore the crypto space. They are doing so due to a large amount of interest in cryptos that is coming from their customers, and the bank’s goal is to meet the clients’ requirements. Additionally, the spokesman also said that no conclusion or big decision regarding the digital asset offering has been reached as of yet.

This effectively limits the bank’s offering to only Bitcoin (BTC) futures, at least for the time being.

Goldman Sachs under new management

Several weeks ago, reports confirmed that Goldman Sachs is about to get a new CEO, David Solomon. Solomon is to replace Lloyd Blankfein, who served as a CEO up to now. The shift in management is expected to have large consequences, especially when Solomon’s crypto-friendly attitude is taken into consideration. Lloyd Blankfein was not nearly as open and welcoming to cryptos. At one point during 2017, he even stated that cryptos do not feel like a store of value, due to their often fluctuations. On that occasion, Blankfein stated Goldman is not ready to provide a Bitcoin strategy, and that it is way too early for that.

However, the bank seems to have completely changed its views on the topic, now that Solomon is in charge. Back in June, while he was still the bank’s COO, Solomon stated that Goldman is looking into new offers regarding cryptocurrencies. Due to the increase in demand, the bank decided that they should at least look into the matter and try to decide where to go next from there.

The bank recognized that it needed to evolve and improve its business, as well as to adapt to the new environment. And, while the bank has only been taking baby steps towards working with cryptos, the new development is still there. However, this still doesn’t mean that a trading desk will be established anytime soon.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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The post Goldman Sachs Group Inc (NYSE:GS) Planning a Custody Service for Crypto Funds appeared first on Global Coin Report.


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