Goldman Sachs Explores Custody Offering for Crypto Funds

Earlier this year, Goldman Sachs confirmed plans to launch a Bitcoin futures trading desk to meet rising client demand.

On Aug. 6, the leading investment bank announced that it is considering offering custodial services for cryptocurrency funds.

Goldman Sachs is exploring a custody offering for cryptocurrency funds, reports Bloomberg.

The custodial service means Goldman Sachs would hold cryptocurrencies on behalf of funds, providing a safeguard for client capital from hacking and cybertheft.

If enacted, Goldman Sachs would become the first major investment bank to back cryptocurrency funds-potentially drawing an influx of institutional capital to the sector.

The launch date of the custody offering has not yet been disclosed.

According to Bloomberg, the launch of a custody operation could lead to further institutional solutions for cryptocurrency investment, such as prime-brokerage services.

In early May, Goldman Sachs confirmed plans to launch a Bitcoin futures trading desk to meet rising client demand.

"We are clearing some futures around Bitcoin, talking about doing some other activities there, but it's going very cautiously. We're listening to our clients and trying to help our clients as they're exploring those things too."

On July 2, San Francisco-based startup Coinbase launched its own custodial service for institutional investors, called Coinbase Custody.