The biggest name on Wall Street Goldman Sachs isn’t keen on holding its customers’ cryptographic assets yet. Justin Schmidt, the head of digital assets markets at Goldman Sachs said that the bank isn’t any closer to holding the users’ crypto assets for them as they do not want to stray too far off from the regulatory lines.
Goldman Won’t Hold Your Digital Coins
Schmidt noted during a New York conference:
“One of the things they ask me is ‘Can you hold our coins?’ and I say ‘No, we cannot. One of the things we have to take into consideration when we’re building out our business is what we can and cannot do from a regulatory perspective.”
Goldman isn’t completely wary of cryptocurrencies though. The bank invested in BitGo Holdings Inc., which is looking to provide custodial services to its users. The bank was also among the first to clear the Bitcoin futures listing by CME Group Inc. and Cboe Global Markets earlier this year. It was also considering starting a trading desk for digital currencies.
Regulations Are Binding Goldman
“There are things that are more limited in terms of what we can offer.”
He added that clients are “quite curious” about the cryptocurrency space.
However, regulatory pressures are building up on Bitcoin. Recently, Jay Clayton, Securities and Exchange Commission chair said that he would only feel “comfortable” with the market when there are better custodial services available. According to Schmidt, Fidelity’s entry into cryptocurrency and Bakkt’s futures exchange show signs of progress in the industry.
“Custody is this foundational piece that is absolutely necessary. Custody is part of an overall integrated system where different parts need to work well with each other and safely with each other, and you have to be able to trust all the different parts in that chain, from buying something to transferring it to storing it in for the long-term.”
He noted further that he wants to see consistent research and development in this space which could lead to real products and services.
Despite the conversation surrounding Bitcoin’s regulatory pressures, the price of the currency has failed to keep up with expectations. Bitcoin’s price has fallen by over 75 percent during the year, with the last two weeks proving to be especially troublesome for the coin. Other cryptocurrencies have also followed suit, tumbling with the bearish market.
Goldman Sachs Won’t Hold Customer’s Crypto Assets Yet’ was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.