Insiders reveal Goldman Sachs may offer a custody plan for cryptocurrency funds, according to a Bloomberg News report. Goldman would join a number of additional Wall Street firms considering such an offering.
While no timeline has been provided by those who are familiar with the situation, a formal custody offering by Goldman Sachs would provide institutional credibility for bitcoin and other digital assets. The “custody for crypto funds” means Goldman would “hold the newfangled securities on behalf of the funds, reducing risk for clients seeking to guard against the threat of losing their investments to rogue attacks.”
A spokesman for Goldman Sachs responded to the report by 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”
While Bloomberg reports additional interest by Bank of New York and JPMorgan, Business Insider would add Fidelity to the list as they report the company is “Hiring staff to build a ‘first-in-class’ custody solution.”
Those who informed Bloomberg of these ongoing deliberations added “Having a custody operation in place could also lead to other ventures, including prime-brokerage services.”