Goldman Sachs Group Inc. 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 company will roll out the services, the people said, asking not to be identified because the information isn’t public.
An 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. According to people, having a custody operation in place could also lead to other ventures, including prime-brokerage services.
“In response to client interest in various digital products we are exploring how best to serve them in this space,” – a spokesman for Goldman Sachs said. – “At this point we have not reached a conclusion on the scope of our digital asset offering.”