The cryptocurrency space has been touted as having the capacity to completely revolutionize the finance industry as we know it. With this in mind, more and more traditional financial institutions are moving towards offering a form of crypto-based service.
World-renowned banking giant Goldman Sachs has joined the list of conventional banking institutions looking to dabble in the cryptocurrency space. A source that spoke with Coindesk revealed that the U.S. banking institution recently published a Request For Information (RFI). The RFI was directed at exploring the possibility of offering a crypto custody options by the bank. The bank reportedly distributed its RFI in 2020 to at least one top player in the crypto custody space.
Prior to Goldman Sachs’ RFI, popular finance institution JPMorgan also issued an RFI focused on exploring digital custody options. The Goldman Sachs source further disclosed that the company is “broadly exploring digital custody and deciding what the next step is.” The source added that the RFI is part of “a broad digital strategy.”
The U.S. OCC and Goldman Sachs Crypto Custody Decision
The United States has been hostile to the crypto space in the past. However, it seems the country is looking to change this narrative. Early this month, the United States Office of the Comptroller of the Currency (U.S. OCC) approved stablecoin use by banks to carry out payments transactions.
According to insider information, this move by the U.S. OCC is the sole motivation behind Goldman Sachs’s recent crypto custody decision.
Even more amazing is the recent conditional approval obtained by San-Francisco based firm Anchorage from the U.S. OCC. This approval makes the crypto firm the first-ever federal-approved cryptocurrency bank, making the crypto firm a legally recognized and fully “qualified custodian.”
Speaking on the announcement, Anchorage President Diogo Mónica disclosed that the approval is a huge step for the entire crypto industry. He added that this move will drive more institutional-grade actors into the crypto space.
According to Mónica, JPMorgan, Goldman Sachs, and Citigroup are all looking towards offering crypto custody services. These banks make up three of the top five largest banks in the United States.
The crypto space is beginning to get the attention it truly deserves. The crypto space is seeing more and more institutional-grade investors. Some of them include MicroStrategy, Guggenheim Foundation, Grayscale Investments, and Square.
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