Goldman Sachs Becomes Latest Investment Bank to Explore Crypto Custody Service

Avi Rosten

Goldman Sachs are reportedly planning to offer a custody service for crypto funds.

According to a report in Bloomberg, the leading Investment Bank is considering a plan that would see them holding crypto-securities on behalf of funds – with the goal of reducing client-risk in holding the investments and protecting funds from attacks.

Although the sources behind the news (who remain unidentified) emphasised that there has been no timeline put in place for the new services, they did suggest that a new custody set-up could precede other services such as prime brokerage.

A spokesperson for Goldman Sachs addressed the rumours:

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.

Bullish?

With many inside the cryptocurrency industry looking for increasing signs of institutional investment, the news will come as welcome relief. 

If confirmed, these plans would be a significant endorsement of cryptocurrency markets as other Wall Street heavyweights such as JP Morgan Chase and Bank of New York Mellon also explore crypto-custody options.

With the recent announcement by ICE (Intercontinental Exchange) the New York Stock Exchange’s (NYSE) parent company, of a new Microsoft-backed digital assets platform, CoinShares Chief Strategy Officer, Meltem Demirors, however,  took a more cynical approach to the news:

Interest in Crypto-Related Jobs Dropped 53%, Despite Growing Employer Demand

The cryptocurrency space has been growing at a rapid pace, with the share of cryptocurrency jobs per million rising 1,457% in the last four years. Interest in these jobs, however, dropped.

A study conducted by job site Indeed found that in the past year, the share of cryptocurrency-related job posts per million rose 26%, while the share of searches per million for these jobs dropped by 53%.

Employer interest likely grew as more and more companies are entering the space. Facebook, for example, is planning to launch a cryptocurrency next year, while payments firm Square created Square Crypto, a crypto-focused division looking to improve the space.

employer demand vs search interestSource: Indeed

To get to its results Indeed analyzed millions of job postings on its platform. It found that the top hirers in the cryptocurrency space include Ernst & Young, Deloitte, IBM, Accenture, Cisco, Verizon, Circle, Kraken, Coinbase, Overstock, Signature Bank, and JP Morgan Chase.

Among the top hirers are big consulting firms, which are hiring people familiar with cryptocurrencies and blockchain technology to help advise clients. Companies like JP Morgan Chase and Signature Bank are on the top as they’ve launched their own blockchain-based payments solutions, namely Signets for Signature Bank and JPM Coin for JP Morgan.

The highest percentage of cryptocurrency jobs, Indeed details, are made up of software roles. Programmers to build decentralized applications and smart contracts are in high demand, which means languages like Java, Python, and JavaScript help candidates land jobs.

The job site noted the growing employer demand is likely to continue throughout next year as more and more firms invest in the cryptocurrency space.

Featured image via Unsplash.