- Global banking giant Goldman Sachs is reportedly exploring the crypto market
- The anonymous inside source explained that the bank is planning to offer crypto custody services
- Offering custodial service would be a first step in the much bigger plan that would include stablecoins
Mega global investment banking, securities, and investment management firm, Goldman Sachs is reportedly exploring the crypto market. A source from within the bank notes that the bank is already planning on making its debut in the crypto market.
Goodman Sachs to Enter the Crypto Space
According to the source which remains unknown, the wall street banking giant has already issued a Request For Information (RFI) to explore the viability of digital asset custody at the end of 2020.
Last year, the Block reported that JP Morgan issued an RFI on crypto custody was issued in October 2020.
According to the source, Goldman’s initiative is part of a much broader digital strategy, that would include stablecoins. The insider explains;
Like JPMorgan, we have issued an RFI looking at digital custody. We are broadly exploring digital custody and deciding what the next step is.
This comes just after the recent moves from the U.S. Office of the Comptroller of the Currency (OCC) to incorporate stablecoins into the banking sector.
On the Flipside
- In a bid to regulate its crypto space, the U.K. Financial Conduct Authority (FCA) has warned investors against new scams offering high returns
- According to the FCA, investors could lose “all their money” if they invest in these new crypto products offering high returns
- The United Kingdom is visibly struggling with the best guidelines for its crypto space.
- The 2020 ban on crypto derivatives which has now become law, is a widely debated topic among crypto enthusiasts and financial advisors in the country.
On the Flipside
The Crypto Industry is Getting it Right
Early signs are pointing towards all the good things the crypto space is all about. In addition to the recent market explosion and increasing institutional interest, there are signs that this may be the year for favorable regulatory guidelines.
Earlier this month, Anchorage Digital Bank became the first cryptocurrency firm to win a federal banking charter from the OCC. The license puts Anchorage on par with other traditional banks in the country.
In an interview held last week, the president of anchorage digital bank, Diogo Mónica hinted that the OCC regulatory approval of the digital bank would bring greater interest from large institutional players.
He also noted that Anchorage has been in talks with the guys at JP Morgan, Goldman Sachs, and Citi Bank as regards crypto services.
The source within Goldman Sachs also noted Anchorage’s approval from the U.S. OCC was intriguing to Goldman. This could make sense considering the fact that Anchorage’s president had earlier admitted that both banks were already in talks.
How big an impact would the entrance of a bank the size of Goldman Sachs have on the crypto market? That much, we’re expecting to see.