The head of Goldman Sachs’ digital asset market division said the regulations currently prevent his company from offering cryptocurrency custody services to its customers.
He believes that the recent decline in crypto-markets is “healthy” for the ecosystem, and would like to see a greater number of companies offering quality products and services.
“We can not keep your corners”
No, Goldman Sachs is not about to offer services to investors who would like to entrust it with the custody of their crypto-currencies.
“One of the questions I’m asked is,” Can you keep my corners? ” I say, “No, we can not do it,” said Justin Schmidt, director of the bank’s digital asset market division, at CoinDesk’s Consensus Invest conference in New York on Tuesday.
“One of the things we have to take into consideration when we built our business is what we can and can not do, given the regulatory aspect.”
Thus, from a regulatory point of view, “there are things we are limited to,” Schmidt said during the conference, adding that his customers were “relatively curious” about this ecosystem and how they could store their digital assets in a secure way.
Goldman Sachs is one of Wall Street’s major banks having already turned to the crypto sphere. Last month, she had invested in BitGo, a company that offers digital asset custody services. It is also one of the first financial giants to offer its clients clearing services backed by Bitcoin futures offered by CBOE and CME.
Last year, it was learned that Goldman Sachs could even launch a crypto-currency exchange platform – a decision that the investment bank would have decided to give up temporarily in September.
“I’m waiting to see institutional-level products and services emerge”
For the leader, many advances have taken place in the crypto sphere in recent months.
Schmidt cited the imminent arrival of Bakkt startup futures, or the Fidelity asset manager’s incursion into the ecosystem.
Nevertheless, he believes that institutional investors remain cautious, and that progress must be made in the offers of custody offered to them.
“Child care is the centerpiece, it’s a very necessary aspect,” he said. “They are part of an integrated system, each component of which must work with others in a secure way. We must be able to trust these different components, whether they concern the purchase of an asset, its transfer, or its storage in a long-term perspective “.
But Schmidt believes that other obstacles, such as the risk of piracy of trading platforms, have yet to be removed.
While he believes that the recent fall of the crypto-markets is “healthy”, he hopes to see coming soon in the ecosystem of new companies likely to have qualitative offers.
“What I really want to see is research and development into real products and services,” he said. “In many ways, the fact that widespread speculation has been stifled over the last few months seems to be a healthy part of the ecosystem. I look forward to the emergence of companies offering products and services at the institutional level. “
In September, Martin Chavez, the chief investment officer of Goldman Sachs, denied the banking giant’s turnaround on cryptocurrencies. He said his company was still working on financial products backed by Bitcoin, as “that’s what his customers want”.
“The next step in this review is what are known as non-physical futures contracts, which are unlisted financial derivatives, settled in US dollars, based on the BTC / USD reference price. by several trading platforms, “he said, but did not set a timetable.