Goldman Sachs Mulls Crypto Funds Custody Service – Report

Anonymous sources said that the US giant is exploring a custody offering for virtual currency funds.

One of the major global banks, Goldman Sachs, is considering to launch custody service for digital coin-based funds, Bloomberg reported on Monday, quoting sources familiar with the bank’s new initiatives. The Sachs spokesman neither confirmed nor rejected the news, according to Bloomberg.

If Goldman Sachs establishes custody service, it will be a major development in the crypto industry because the bank would hold the securities on behalf of the funds, which will reduce the risk for clients seeking to protect themselves against the threat of losing their investments to rogue attacks.

“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 as quoted by Bloomberg.

“At this point, we have not reached a conclusion on the scope of our digital asset offering.”

Currently, the US investment bank offers only Bitcoin (BTC) futures.

The news came several weeks after Goldman Sachs appointed David Solomon as new CEO. Solomon is considered a “crypto friendly” compared to his predecessor, the long-running Goldman Sachs CEO Lloyd Blankfein. Last year, Blankfein said that something that fluctuates by 20% in a day “doesn’t feel like a store of value” and added that it is too early for Goldman Sachs to have a BTC strategy.

In a completely different tone, in June Solomon, the bank’s COO at the time, said that the financial institution is examining new crypto offers to adjust to the new demands that virtual coins create. Goldman Sachs must “evolve its business and adapt to the environment”, Solomon has 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,” Solomon said in an interview with Bloomberg TV in China in June.