Goldman Sachs Reportedly Considering Crypto Custody Service

Having launched bitcoin futures trading in May, New York-based multinational investment bank, Goldman Sachs, is reportedly pondering taking the next step in the cryptocurrency market that will involve the launch of a crypto custody service. If the report, which was filed by Bloomberg, is true the move would make the investment bank the first large and credible institutional player to offer custody for cryptocurrency funds – this is exactly what the crypto market in the United States and the rest of the world have been waiting for.

If attainable, such an asset securing guarantee are at the very “least elusive in such an unregulated and fledgling market.” However, if realized, Goldman Sachs’ cryptocurrency custody services will certainly be a game-changer. In fact, it safe to say that just the talk of the offering itself is enough indication that there is growing demand for such services, and if they materialize they may even encourage more investors to participate.

Furthermore, supposing the offering gets the go-ahead, it will buff up the credibility of the cryptocurrency market, by acting as a vote of confidence of sorts for crypto. This would eventually pave way for the legitimization for the legitimization of the cryptocurrency index and hedge funds in as far as the institutional players are concerned.

According to Bloomberg’s anonymous source(s), deliberations on the matter are on-going but no timeline has been set for when the Wall Street giant will roll out the custody services. Goldman Sachs released a statement recently neither confirming nor denying the existence of such a move.

“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.”

Goldman Sachs has been taking its time with its crypto-related projects – despite announcing a crypto trading desk in May, it is yet to set-up a full-fledged desk for the same. Still, sources close to the company have confirmed that the services are being worked on in the background and will be availed to customers once they are ready.

Still Wary About Bitcoin

Despite Goldman Sachs plans to launch various crypto-related projects, the firm is not going to begin making any bullish bitcoin price calls anytime soon.

“Our view that cryptocurrencies would not retain value in their current incarnation remains intact and, in fact, has been borne out much sooner than we expected,” a recent Goldman Sachs report stated. “We expect further declines in the future given our view that these cryptocurrencies do not fulfill any of the three traditional roles of a currency: they are neither a medium of exchange, nor a unit of measurement, nor a store of value.”


Goldman Sachs, Wall Street Warming Up to Crypto Trading

Some of Wall Street’s biggest names are finally waring up to bitcoin and the entire cryptocurrency ecosystem as a whole. Since the first decentralized digital currency came into being, they have all been consigned to the unregulated fringes of the financial world, but all this is about to change with the new bitcoin trading bid that a number of institutions are beginning to warm up to.

Spearheading this new development is Goldman Sachs which is slated to be the first Wall Street bank to launch and offer cryptocurrency-related trading services. The renowned financial institution is working on rolling out a number of derivative products that will allow its customers to buy contracts related to price fluctuations in bitcoin. In addition to this, Goldman Sachs also plans to create a more flexible type of futures product that will be referred to as a non-deliverable forward.

The non-deliverable product will be a trading approach that will involve no physical exchange of the underlying asset. Instead, it will involve the exchange of currency that is quoted on the settlement of the date of the forward.

Shortly after Goldman Sachs went public with its plans to set up a cryptocurrency trading desk, news that the Intercontinental Exchange (ICE), New York Stock Exchange’s parent company, has been working on an online bitcoin trading platform surfaced. This, for bitcoin, represents a dramatic yet welcome shift towards mainstream acceptance and usage especially considering the fact that the digital currency has often been associated with underworld activities and high-risk, speculative investment.

Ex-Goldman Sachs President Not Yet Sold on Bitcoin

While he believes that the world is on its ways towards a global currency, former Goldman Sachs president, Gary Cohn, believes that the currency will not be bitcoin. In an interview with CNBC, Cohn said that he believes that the world will have a “global cryptocurrency at some point where the world understands it and it’s not based on mining costs or cost of electricity or things like that. This implies that the supposed global currency will have to be “more easily understood” than bitcoin.

“I’m not a big believer in bitcoin. I am a believer in blockchain technology. I do think we will have a global cryptocurrency at some point where the world understands it and it’s not based on mining costs or cost of electricity or things like that,” Cohn said in a “Squawk on the Street” interview. “It will probably have some blockchain technology behind it, but it will be much more easily understood how it’s created, how it moves and how people can use it.”