Goldman Sachs Planning to Make a Foray Into Crypto
U.S Banking giant Goldman Sachs is reportedly planning a move into the cryptocurrency ecosystem. According to a report by Coindesk, the investment bank and financial services company has issued a Request For Information ( RFI) to delve into digital asset custody.
Although there’s no specific time for the launch of the custody services, the source indicates that the plans would be evident soon. Also, the RFI was circulated to at least one crypto custody player toward the end of 2020.
This is coming on the heels of the RFI issued by JP Morgan in November 2020, another investment bank with active interests in the cryptocurrency ecosystem. Also, the bank’s interest in digital asset custody is not unconnected with its broad digital strategy due to the recent announcement from the Office of the Comptroller of Currency (OCC). According to the letter from OCC, regulated banks can use stablecoins to conduct payments and other services. Also, financial institutions can participate in Blockchain Networks, store and validate payments through bitcoin nodes.
Goldman Sachs avoiding Competition in its Crypto Interest
The source also confirmed that Goldman Sachs avoids cryptocurrency brokerage services, which are currently being provided by some key players in the cryptocurrency ecosystem. The cryptocurrency exchanges and companies which provide brokerage services include Coinbase, BitGo, and Gemini.
In another vein, Anchorage, a San Francisco-based digital asset custodian, received conditional approval from the OCC to become a national digital bank, thereby meeting the full requirements of being a qualified cryptocurrency custodian. This approval will invite many large institutional players into cryptocurrency, according to Anchorage President.
Meanwhile, bitcoin’s mainstream adoption is poised to draw more key participants into the cryptocurrency ecosystem, with provincial governments exploring the option of investing funds in cryptocurrency. Miami Mayor Francis Suarez has indicated his interest in ensuring bitcoin adoption in the city and exploring the possibility of investing government funds in cryptocurrency.