Wall Street giant, Goldman Sachs, is reportedly considering offering customers custody for cryptocurrency. Such a move could be a significant development in a couple of key ways. For starters, Goldman Sachs crypto could pave the way for interested investors to begin exploring the world of cryptocurrency. More broadly, Goldman’s crypto custody could help legitimize cryptocurrency in general.
Goldman Sachs Crypto
News of Goldman Sachs’ plan first surfaced recently, noting that the financial firm is considering the possibility of offering clients custody for cryptocurrency. Joining Lloyd’s of London, who is now offering crypto insurance. Should this plan come to fruition, the firm would hold crypto and other digital assets on behalf of clients as insurance in the event of an unexpected cyber-attack.
At this point, details remain unclear, especially since Goldman Sachs has yet to make a formal announcement; though leaked information indicates that the firm continues to discuss the possibility. As of now, there appears to be no timeline in place for when any sort of action might be taken.
Although Goldman Sachs hasn’t indicated whether or not they are leaning toward offering crypto custody, there is a precedent for such a move. Earlier this year, Goldman announced that they will begin trading Bitcoin (BTC) and other such products linked to Bitcoin.
After news of this development broke, Bitcoin saw an almost immediate $200 increase in value. In many ways, Goldman Sachs seems open to doing dealings in cryptocurrency. With all this said, many experts believe that the firm could very well decide to launch a crypto custody product for its customers.
Progress for Cryptocurrency?
The possibility of a Goldman Sachs crypto custody offering is generating a lot of excitement. In particular, experts have focused on the way that such a decision could make it significantly easier for investors to test the waters.
At this point, many investors and other potential players remain wary of cryptocurrency. Common concerns include the possibility of a cyber-attack or cryptocurrency hack that could lead to devalued or stolen currency. Similarly, the fluctuation in crypto values has kept some potential users away.
A Goldman Sachs crypto custody product could provide an added sense of security against the above risks. This, in turn, could encourage increased investment and adoption rates.
Similarly, many market experts have expressed optimism at the growing number of major financial institutions beginning to embrace crypto. For example, Bank of New York Mellon Corp., JPMorgan Chase & Co., and Northern Trust Corp. are all allegedly considering or actively developing some sort of crypto custody offering. Goldman Sachs will be the newest big-name firm on this list.
Despite all this potential activity, concerns and uncertainties persist for many finance players. In particular, the fact remains that bitcoin has lost much of its value since its widely publicized growth in 2017.
Many financial institutions predict decline in Bitcoin price. However, that doesn’t mean that big financial players agree. For example, former Goldman Sachs partner Michael Novogratz predicted a Bitcoin price surge.