Goldman Sachs just declared bitcoin dead – now the investment bank may store the currency for crypto funds

Goldman Sachs just declared bitcoin dead – now the investment bank may store the currency for crypto funds.

Image source: Shutterstock / Trijo News

Christian Ploog

christian.ploog@trijo.co

First, Goldman Sachs declared that the bitcoin price will continue to decline. Now, it is rumored that the big investment bank is planning to offer a custodial service to store bitcoin for crypto funds.

A few days ago, one of the world’s most well-known investment banks, Goldman Sachs, released a report that said that the bitcoin price will continue to decline.

“We expect further declines in the future given our view that these cryptocurrencies do not fulfill any of the three traditional roles of a currency: they are neither a medium of exchange, nor a unit of measurement, nor a store of value”, said Sharmin Mossavar-Rahamani, chief investment officer at Goldman Sachs, according to Business Insider.

Now, however, it has been revealed that the investment bank is considering launching a custodial service for storing bitcoin for crypto funds, something that could greatly impact the crypto market.

More institutional investors

According to a Bloomberg report, it is believed that Goldman Sachs will hold cryptocurrencies on behalf of funds, which would reduce the risk for their customers in losing their investments to rouge attacks.

Similar storage services already exist at, for example, the crypto exchange Coinbase, but this is the first time it is rumored that a large Wall Street bank will do the same. If this becomes reality, it would provide a credible backing for crypto funds, which could let more people, not least professional and institutional investors, to bet on cryptocurrencies.

“At this point we have not reached a conclusion on the scope of our digital asset offering”

When or if this is to be rolled out, however, is still unclear. Goldman Sachs themselves do not confirm anything at this time.

“In response to client interest in various digital products we are exploring how best to serve them in this space. At this point we have not reached a conclusion on the scope of our digital asset offering”, a spokesman for Goldman Sachs said to Bloomberg.

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