Goldman Sachs Mulls Custody for Crypto Funds
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Aug. 6, 2018

Goldman Sachs (TOCOM: GS) is considering the possibility of creating a custodian solution with the help of which cryptocurrency funds will be able to store their assets, as cited in Bloomberg. In other words, the investment bank is preparing to assume the function of storing clients’ cryptocurrency assets, thereby reducing the risks associated with hacking and other incidents occurring from time to time in the industry. According to the portal’s anonymous sources, the discussion of the issue of opening a custodial service is continuing, and the deadlines for the decision were not established.

WHY IS IT IMPORTANT?

1. Goldman Sachs is the world’s leading investment bank. This is the most influential organization on the Wall Street, from which the secretaries of the U.S. Treasury (for example, the current secretary Steven Mnuchin), lobbyists, senators, advisors to the presidents come out. The bank even jokingly called the Government — Sachs.

2. If Goldman Sachs really adds this option, it will allow cryptocurrency funds to get a reliable support and attract new investors' attention to the digital assets.

3. The creation of a custodian solution within Goldman Sachs will enable the credit institution to start providing other services for working with cryptocurrencies, for example, the primary brokerage service.

The spokeswoman for Goldman Sachs has commented on the information that in response to customer requests for various digital products, they are studying the best ways to provide services in this area. To date, the scope of the proposal in the field of digital assets has not been decided.

Despite the possible interest in the custodian solution for crypto, the biggest investment bank in the world is not so optimistic about bitcoin’s future. According to the mid-year outlook-report, the bank has recently unveiled, Goldman Sachs is listing cryptocurrencies as an “unsteady factor threatening the outlook,” and believes that this sphere is getting too much of an attention.

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