Goldman Sachs is considering creating a cryptocurrency custody service according to inside sources familiar with the matter. If successful, the move could signal a new dawn in the nascent virtual currency industry. Many experts continue to identify custodial tools as a necessary component of a mature cryptocurrency industry.
Goldman Sachs Crypto Custody Platform
Anonymous inside sources has reportedly revealed to Bloomberg, that Goldman Sachs is eyeing a move to offer custodial services for cryptocurrency funds. According to the details unearthed thus far, the Wall Street bank would hold the crypto assets on behalf of funds that trade in virtual currencies.
No timeline has been set for the launch of the custodial platform, but discussions within the bank are said to be underway. The association of a notable brand like Goldman Sachs with the cryptocurrency industry in any capacity is a welcome development for crypto enthusiasts.
Goldman Sachs Still Dipping its Toes in the Cryptocurrency Arena
Since the start of 2018, Goldman Sachs seems to be showing more of an interest in the emerging cryptocurrency market. However, most of its moves appear to be tentative with no concrete product offerings thus far. There is a fair bit of reticence on Wall Street concerning the viability of the virtual currency business.
Commenting on the bank’s stance regarding cryptos, a spokesperson for Goldman Sachs said:
“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.”
The Quest for Robust Cryptocurrency Custodial Tools
While the cryptocurrency community awaits the outcome of Goldman Sachs’ plans, the quest for robust custodial tools in the industry continues. Many experts have alluded to the lack of such tools as the reason why institutional investors are yet to flock to the market.
Apart from the volatility of digital coin prices, the risk of exchange hacks and sundry losses remain a clear and present danger to the safety of investments in the space.
Goldman Sachs isn’t the only prominent bank that is exploring a crypto custodial platform. Others like Northern Trust Corp and JP Morgan are also working on creating custodial tools for digital assets.
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