Goldman Sachs Considers Offering "Cryptocurrency Custody" Services
Unless you're outside the United States or have been living in a hole for the past few decades, I'm sure you know what the company "Goldman Sachs" is. And, well, they just made another step towards betting in the cryptocurrency market.
The New York-based investment firm has just made another step towards betting in the cryptocurrency market. Led by CEO Lloyd Blankfein, is reportedly considering a plan to offer custody for crypto-funds. If Goldman Sachs enters the cryptocurrency game, then this would hopefully give the public it’s trust in the cryptocurrency market a large boost, and we can expect prices to go up… a lot.
San Francisco based currency exchange, Coinbase, was the first firm to offer custody services to its clients. Now with Goldman Sachs considering operations in the crypto-world, this could be the game-changing within the institutional scope.
NewsBTC puts it as, “While being a giant among its cryptocurrency peers, Coinbase is still a young company and fully invested in one single and volatile asset class. Goldman Sachs, on the other hand, has a long history of success in investment banking and is one of the most powerful influencers in capital markets. The entry of Goldman Sachs in the cryptocurrency market as a custodian could make a significant impact on the ecosystem as institutional players would most likely lower their concerns about losing their funds to hackers.” I couldn’t say it better myself, Coinbase small, Goldman Sachs big and reliable. Period.
Air Paul, co-founder of Block Tower, claimed that the “…lack of trusted custodianship and a suite of institutional cryptocurrency products was the last barrier preventing institutional investors from entering the cryptocurrency market.” He’s certainly not wrong in that respect, most people, especially Wall Street investors, do not trust and refuse to trust the cryptocurrency market, as volatile as it is, since a cryptocurrency can go from a few hundred dollars to a few dollars just over the course of a single week, leaving investors with a pile of dirt (I’m looking at you, Bitconnect).
The Bloomberg report also added that at least three large Wall Street custodians are developing or exploring cryptocurrency custody services – Bank of New York Mellon Corp., JPMorgan Chase & Co., and Northern Trust Corp.
Now, what are your opinions on this? Will Goldman Sachs and potentially other large investment firms like JPMorgan entering the cryptocurrency market restore trust in, perhaps, Bitcoin and Blockchain technology altogether? Or could it crash in ruins and monopolize Goldman Sachs? Let us know your thoughts and opinions in the comments below!