Goldman Sachs Eyeing A Crypto Custodian Service for Wall Street

Goldman Sachs Eyeing A Crypto Custodian Service for Wall Street

Investment bank heavyweight Goldman Sachs is eyeing a new digital asset custody service for crypto-centric funds, per Bloomberg. The report comes on the heels of NYSE owner Intercontinental Exchange Inc. announcing its coming crypto trading and custodial platform Bakkt last week. It also comes after Goldman Sachs Investment Strategy CIO Sharmin Mossavar-Rahman recently projected the bitcoin price will see “further declines.”

Also read: Bitcoin Traders Nabbed in Clawback Policy As OKEx Whale Proves Too Big to Fail

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Nothing Public Yet, But There’s Reportedly Serious Interest

Goldman Sachs is scrutinizing the possibility of opening up a cryptocurrency custodial service for “crypto funds,” per anonymous sources familiar with the negotiations who have spoken to Bloomberg.

According to the contours of the internal proposal, the service would work like any crypto custodial service, with Goldman Sachs being responsible for providing enterprise-grade digital asset storage solutions for large investors and funds.

Beyond that, there’s little concrete specifics for now, and a Goldman Sachs spokesperson has said the firm has yet to reach any hard determinations:

“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.”

If such a service does come to materialize, it won’t be the only digital asset custody solution on Wall Street. Intercontinental Exchange Inc., the owner-operators of the +$20 trillion market-cap New York Stock Exchange, announced on August 3rd that it was launching Bakkt, a “scalable on-ramp for institutional, merchant and consumer participation in digital assets.” Bakkt, like Goldman Sachs’ possible coming operation, will offer custodial services.

Whatever happens, it’s clear the investment bank has bitcoin on the brain. News broke in May 2018 that Goldman Sachs was opening up a bitcoin trading desk. And the firm also caused a stir in the cryptoverse last week after a projection for a continued bitcoin bleed-out from Goldman Sachs Investment Strategy CIO Sharmin Mossavar-Rahman made the rounds.

Coinbase Custody Looking at Range of Assets Beyond Coinbase’s Main Offerings

Ever since Coinbase split up into several arms, the exchange’s leadership has maintained that Coinbase Custody would likely end up supporting far more cryptocurrencies than the company’s trading platforms.

Now, Coinbase is apparently making good on that proposed dynamic, in that the company has announced its exploration of adding support for 37 further cryptocurrencies.

Coinbase
Some of these assets may never make it to Coinbase Pro, but they’re now under consideration for Coinbase Custody.

The exchange noted the exploration would have “no bearing on trading-based products” and that they “cannot commit to when or whether these assets will become available on Coinbase Custody.”

Still, if an expansion comes, it marks yet another widening of possibilities for institutions looking toward crypto.

What’s your take? What do you think of Goldman Sachs’ recent cryptocurrency moves? Let us know what you think in the comments below. 


Images via Coinbase, Pixabay

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