Goldman Sachs is planning custody offering for cryptocurrency funds: Report 20401
News
Vidwan Reddy
Aug 6, 2018 at 6:49 PM

Goldman Sachs, the multinational investment banking firm, is considering to provide custody for crypto funds, Bloomberg has learned from its sources. If the plan materializes, the company could further boost the world the funds betting on Bitcoin and other cryptocurrencies.

It is understood that the bank would hold securities on behalf of the funds, thereby minimalizing risk for clients against losing their investments to rogue attacks. The people who are in the know told Bloomberg that a timeline was not decided for the roll-out of services. As the information is not public, they asked not to be identified.

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They said a formal offering from a firm like Goldman Sachs would encourage investors to bet on the crypto funds. It gives the much-needed credible backing, the people felt. A custody offering would also pave way for other ventures like prime-brokerage services, they added.

“In response to client interest in various digital products we are exploring how best to serve them in this space,” a spokesman for Goldman Sachs said. “At this point, we have not reached a conclusion on the scope of our digital asset offering.”

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Earlier, David Solomon, the Chief Operating Officer at Goldman Sachs, said: “We are clearing some futures around Bitcoin, talking about doing some other activities there, but it’s going very cautiously. We’re listening to our clients and trying to help our clients as they’re exploring those things too.”