Goldman Sachs Set to Offer Crypto Investment Services in Q2

Goldman Sachs is gearing up to start offering investment vehicles for cryptocurrencies in the second quarter of this year. The move marks a major departure from Goldman’s stance just a few years ago, when it was one of the most high-profile critics of leading digital assets like Bitcoin.  

Mary Catherine Rich, who was recently appointed as global head of digital assets for Goldman’s private management division, announced that the bank will be offering Bitcoin and other cryptocurrencies as an investment opportunity. The offer is currently limited to the bank’s wealth management clients.

In an interview with CNBC, Rich explained that the bank is exploring crypto-related toolkits and options that it could offer through a range of investments. The users will likely still have to rely on external solutions, such as investing in cryptocurrency trackers or crypto tax calculators and other software.

“We are working closely with teams across the firm to explore ways to offer thoughtful and appropriate access to the ecosystem for private equity clients, and that is something we look forward to delivering in the near term,” Rich said.

As the SEC and other government agencies worldwide implement new rules and regulations for the crypto market, a growing number of banks and other financial institutions are jumping on board to include digital assets in their offering. 

Morgan Stanley, a renowned American financial institution, has already announced that its advisors will start offering Bitcoin funds within a month. It’s only logical for Goldman Sachs, another industry giant, to follow suit.

According to the people involved in the matter, Goldman is currently aiming to secure the needed approval from both the SEC and the New York Department of Financial Services. 

If the bank meets the requirements to offer crypto services, its clients will be able to expand their portfolios to include digital assets. According to Rich, economic uncertainty is fuelling demand for crypto investments.  

“There’s a contingent of clients who are looking to this asset as a hedge against inflation, and the macro backdrop over the past year has certainly played into that […] There are also a large contingent of clients who feel like we’re sitting at the dawn of a new Internet in some ways and are looking for ways to participate in this space,” Rich added.