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Goldman Sachs Group Inc (NYSE:GS) Planning a Custody Service for Crypto Funds

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According to anonymous reports, Goldman Sachs Group Inc (NYSE:GS) might soon come up with a new custody service for crypto funds, moving beyond BTC futures.

Crypto funds custody service rumors not denied

Goldman Sachs is one of the biggest and best-known banks around the world. It was skeptical of cryptocurrencies until recently, but the new management has said to have brought a new attitude towards digital currencies as well. Now, sources familiar with bank’s plans claim that Goldman might soon come up with a new custody service for crypto funds. Unfortunately, the bank’s spokesperson did not confirm this, but the rumors were not denied either.

Establishing custody service like this would represent a very big achievement for the crypto world. Securities would be held by the bank and on behalf of the funds. That would increase the clients’ trust, and lower the risks of them trying to find protection from losing their funds in rogue attacks.

As for Goldman’s spokesman, he was only willing to say that the bank continues to explore the crypto space. They are doing so due to a large amount of interest in cryptos that is coming from their customers, and the bank’s goal is to meet the clients’ requirements. Additionally, the spokesman also said that no conclusion or big decision regarding the digital asset offering has been reached as of yet.

This effectively limits the bank’s offering to only Bitcoin (BTC) futures, at least for the time being.

Goldman Sachs under new management

Several weeks ago, reports confirmed that Goldman Sachs is about to get a new CEO, David Solomon. Solomon is to replace Lloyd Blankfein, who served as a CEO up to now. The shift in management is expected to have large consequences, especially when Solomon’s crypto-friendly attitude is taken into consideration. Lloyd Blankfein was not nearly as open and welcoming to cryptos. At one point during 2017, he even stated that cryptos do not feel like a store of value, due to their often fluctuations. On that occasion, Blankfein stated Goldman is not ready to provide a Bitcoin strategy, and that it is way too early for that.

However, the bank seems to have completely changed its views on the topic, now that Solomon is in charge. Back in June, while he was still the bank’s COO, Solomon stated that Goldman is looking into new offers regarding cryptocurrencies. Due to the increase in demand, the bank decided that they should at least look into the matter and try to decide where to go next from there.

The bank recognized that it needed to evolve and improve its business, as well as to adapt to the new environment. And, while the bank has only been taking baby steps towards working with cryptos, the new development is still there. However, this still doesn’t mean that a trading desk will be established anytime soon.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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collateralized debt position
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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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