In a scoop that is making the rounds throughout crypto twitter and larger financial media outlets today, Goldman Sachs is said to further develop its client facing capabilities in and around crypto assets. Specifically, Bloomberg broke the story today that Goldman is making swift progress to providing a custody solution for client crypto assets:
Via Bloomberg: “The firm is considering a plan to offer custody for crypto funds, according to people with knowledge of the matter. That means the bank would hold the newfangled securities on behalf of the funds, reducing risk for clients seeking to guard against the threat of losing their investments to rogue attacks.”
“The deliberations are ongoing and no timeline has been set for when the firm will roll out the services, the people said, asking not to be identified because the information isn’t public.”
“A formal offering from an institution like Goldman Sachs would provide a credible backing for crypto funds and could pave the way for more investors to bet on the asset class. Having a custody operation in place could also lead to other ventures, including prime-brokerage services, the people said.”
As several billionaires and crypto luminaries have accurately described (Novogratz and Custody) custody is the singular issue that could take crypto assets significantly higher, turbo boost adoption, press structured products into the mainstream, and cement cryptos as an asset class of distinction.
This Goldman Sachs news is exactly that. Should they pull off a custody solution for crypto assets and be, effectively, first to the institutional party on it, they will crush competitors. Absolutely crush them. UHNW clients will transfer assets at Coinbase, GDAX, OTC groups, Binance, etc at a remarkable rate.
Whatever you do or do not believe about Goldman Sachs, they always seem to be a step or two ahead of their competition – whichever competition they decide to compete against on any given day.
**Food for thought – does it make a little bit of sense that Goldman could find themselves acquiring a firm like Gemini to play along with Circle and offer full-service trading, custody, and structured products backed by the Goldman Sachs name over the next 12-24 months? Maybe you should just BTFD!? Yeah…