Cryptocurrency mainstream adoption is about to receive a boost, if recent developments at Goldman Sach’s is anything to go by. Immediate reports indicate that the investment giant is looking to invest in digital assets, a development likely to bolster sentiments in the burgeoning sector.
Goldman Sachs Crypto Plans
According to reports, the New York-based financial juggernaut has requested information as it explores the possibility of offering custody services to at least one crypto. The report states that the latest push is part of the bank’s broad digital strategy. It has also emerged that the firm’s digital asset custody RFI has already been circulated to at least one well-known crypto custody player.
Goldman Sach’s push into the crypto safe comes hot on the heels of San Francisco-based Anchorage Digital Bank being issued a conditional approval by the Office of the Comptroller of Currency. The authorization essentially makes the bank the first national digital Bank.
Anchorage approval is expected to entice many institutional I players to pursue opportunities around cryptocurrencies. Anchorage President Diogo Monica has already confirmed that it is indeed true JPMorgan Goldman and Citi are all exploring the possibility of offering crypto custody services.
While there has been chatter of Goldman offering prime brokerage services involving crypto, that is unlikely to happen. The financial behemoth is reportedly looking at offering custody services and not prime brokerage services.
Goldman Crypto Custody Impact
Nevertheless, Goldman Sachs offering crypto custody services will go a long way in bolstering investor’s sentiments, especially among institutional investors. While the sector has been shrouded in mystery amid elevated volatility levels for the longest time, things are starting to look up, with many institutional investors eyeing opportunities in the sector. The entrance of the three large financial juggernauts in the U.S will go a long way in affirming there are opportunities worth pursuing in the sector.
Goldman Sachs’s interest in crypto custody services comes when most cryptocurrencies are on a roll outperforming a good number of traditional securities. For starters, Bitcoin has been on an impressive run outperforming commodities such as Gold that many at times have been relied upon as safe-haven.
Bitcoin prospects as a safe-haven have been growing in recent months. The crypto has already powered to record highs of $41,000, outperforming Gold, which has always been a reliable safe-haven in times of uncertainty, such as THE one triggered by the COVID-19 pandemic.
Bitcoin’s impressive run has already attracted a number of mainstream investments. Payment Giant Square has already placed a $50 million bet on the flagship crypto in anticipation of its price powering high. Business intelligence firm MicroStrategy is also in for a huge pay as Bitcoin prices continue to soar. The firm has already confirmed a $250 million investment in Bitcoin.
Paypal is another payment giant to eye opportunities in the burgeoning crypto sector. The firm has already made it possible for people to buy, sell, and hold a number of cryptocurrencies in its flagship app. Likewise, as more mainstream institutions get involved in the crypto spectacle, institutional and retail investors should continue to pursue investment opportunities.