Goldman Sachs Is Reportedly Weighing a Crypto Custody Service

Having launched bitcoin futures trading in May, Goldman Sachs is now pondering the launch of a cryptocurrency custody service, according to a report.

Aug 6, 2018 at 4:35 p.m. UTC
Updated Sep 13, 2021 at 8:15 a.m. UTC

Having launched bitcoin futures trading in May, Goldman Sachs is now pondering the launch of a cryptocurrency custody service, according to Bloomberg.

In a report published Monday, the news service cites anonymous sources as saying that the investment bank is mulling the creation of a secure storage service aimed at crypto funds to help protect them against the risk of hacking.

So far, though, it seems the possibility is still being discussed and a launch date is not certain. The banking group told Bloomberg that, while it is investigating "various digital products," it hasn't yet made a decision on any product offering.

However, the sources indicated the service could eventually help Goldman Sachs open up other crypto-focused services, such as a brokerage.

The news comes just a month after major cryptocurrency exchange Coinbase launched its own custody service, aiming to serve institutions prepared to deposit over $10 million worth of digital assets. Other startups in the crypto space also offer to keep your assets safe for a fee, including BitGo which revealed it was courting Wall Street firms in May.

While previously Goldman Sachs has been largely skeptical about cryptos, warning investors in January that they were "in a bubble," the company said in May it would start trading bitcoin futures launched by Cboe and CME late last year.

At the time it said it would use its own money to trade bitcoin futures on behalf of its clients.

Bank deposit boxes image via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
Crypto Hedge Fund Elwood Closes $70M Funding Led by Goldman Sachs and Dawn Capital

Dawn Capital co-led the Series A alongside CommerzVentures, Barclays, Galaxy Digital Ventures and BlockFi Ventures.

Dawn Capital co-led the Series A alongside CommerzVentures, Barclays, Galaxy Digital Ventures and BlockFi Ventures.

2
Australian Tax Office Warns Crypto Investors on Capital Gains Obligations

The rate of capital gains tax on digital assets in Australia is determined by an investor's income tax rate.

The rate of capital gains tax on digital assets in Australia is determined by an investor's income tax rate.

3
Digital Euro Could Come Out Within Four Years, ECB's Panetta Says

Peer-to-peer payments among friends could be a first test case, though no final decision’s yet taken

Peer-to-peer payments among friends could be a first test case, though no final decision’s yet taken

4
Luna Foundation Guard Left With 313 Bitcoin After UST Crash

The announcement comes after reports that over a billion dollars of Terra’s bitcoin reserves are unaccounted for.

The announcement comes after reports that over a billion dollars of Terra’s bitcoin reserves are unaccounted for.