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Nearly three months have pbaded since Goldman Sachs, a US $ 73 billion investment bank, said it is not ready to facilitate delivery of "physical Bitcoins" to its customers . The banking giant is still unable to hold cryptocurrencies on behalf of its customers, despite growing demand from its customers.
At a conference in New York, Justin Schmidt, Head of Digital Asset Markets at Goldman Sachs, said:
"One of the things they ask me is, 'Can you keep our rooms?' And I say, "No, we can not. One of the things we need to consider when developing our business is what we can and can not do from a regulatory perspective. "
When can Goldman Sachs enter the bitcoin market?
Goldman Sachs has been facilitating investment in Bitcoin futures for its clients for some time. In an interview with Bloomberg TV in China, Goldman Sachs CEO David Solomon confirmed for the first time that the company settled the Bitcoin futures contract since June.
"We're cleaning up some futures around Bitcoin, we're talking about doing other activities there, but it's very cautious. We listen to our customers and try to help them explore them. Goldman Sachs needs to evolve its business and adapt to the environment, "Solomon said.
The US bank has already entered the cryptocurrency market and is helping investors negotiate bitcoins in the futures market.
However, the Bitcoin futures markets that currently exist in the US market do not promise the physical delivery of Bitcoin, which means that investors do not buy Bitcoin in the futures markets, but rather that contracts reflecting the price of the dominant cryptocurrency.
Bakkt, the cryptocurrency exchange developed by ICE, the parent company of the New York Stock Exchange, is expected to open a futures market in January offering physical bitcoins to its investors, but to date, no regulated futures market in the United States United States does not contain crypto customers.
In order for Goldman Sachs to hold cryptocurrency for its clients, it needs regulatory approval to operate as a regulated and trusted crypto depository. Several companies such as Coinbase and BitGo have put in place unique methods to be approved depositories.
BitGo, for example, has launched its own regulated depository, BitGo Trust.
Goldman Sachs chief executive Justin Schmidt said custody is an important element that the bank lacks. Without regulatory approval, it will not be able to directly hold digital badets for the bank's customers.
"The guard is this fundamental piece that is absolutely necessary. The guard is part of an integrated overall system in which different parts must work well with each other and safely, and you must be able to trust all the different parts of this chain, from the purchase to a transfer through the transfer. long term, "Schmidt added.
Customers ask
As Schmidt said, Goldman Sachs' customers have started asking the bank to provide depository solutions to protect their investments in digital badets. Over time, as space becomes more regulatory clarity, the bank may find an appropriate timeframe to begin operating as a custodian. But now, Goldman Sachs believes he is not ready yet to do it.
Pictures of Shutterstock
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