Goldman Sachs Considers Cryptocurrency Custody Funds

The investment bank Goldman Sachs is considering starting to hold funds in cryptocurrencies as part of a commercial strategy, even though it remains skeptical of the cryptos market.

Goldman Sachs considers providing cryptocurrencies investments

Goldman Sachs is deliberating on the possibility of becoming the first investment bank on Wall Street to grant custody of its clients’ crypto assets, according to related sources. This financial company, which does not have a favorable view regarding Bitcoin (BTC) futures on the short-term, seems to be taking a new direction in its strategy of incursion into the crypto-verse.

Bloomberg’s anonymous sources assured that the execution of the plan would imply the protection of his clients’ crypto coins against “dishonest attacks,” as an alternative to reduce the risks linked to the ecosystem, such as frequent hacking. At the moment, the strategy is not official, as Goldman Sachs spokespersons have not made a statement on it.

If it does occur, the support of cryptos funds by a regulated institution such as Goldman Sachs may symbolize legal support for the disruptive proposal of crypto-economy, making it an object of interest to other individual and institutional investors as well as to listed investment funds.

However, Goldman Sachs’ position on cryptos is not very clear

In the latest report published by the financial firm, Goldman Sachs’ chief investment officer said that Bitcoin (BTC) “craze” is “one of the six factors that will create unrest in the markets during the remainder of 2018”, as “Bitcoin (BTC) will not maintain its value”, in his opinion.

In contrast to the report, which also states that cryptos “do not fulfill any of the three traditional functions of a coin,” they appointed Justin Schmidt as vice president and leader of the Digital Asset Market area last April. The inclusion of Schmidt came along with the evaluation of the opening of a cryptocurrencies trading desk.

Goldman Sachs’ new possible incursion into crypto-economy has been an open door for many months and with different projects. However, these may not yet materialize.

You might like

About the Author: Anna Galvez

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.