Why Goldman Sachs And Others Are Investing In Cryptocurrency Custodian

goldman sachs

NEW YORK—Goldman Sachs Group Inc. and a venture founded by one of its former partners, billionaire Mike Novogratz, are investing about $15 million in cryptocurrency custodian BitGo Holdings Inc., as the bank's wealthy clients keep asking about secure ways to hold those assets, Bloomberg reports.

U.S. regulators require large money managers to entrust client assets to a so-called qualified custodian – often industry pillars such as State Street Corp. and Bank of New York Mellon Corp. But the initial unwillingness of many traditional firms to hold digital currencies, which are notoriously vulnerable to hackers, has kept a lot of major investors out of the market, Bloomberg said.

That's given startups such as BitGo a chance to pursue their business, Bloomberg said.

 

Section: Standard
Word Count: 187
Copyright Holder: CUToday.info
Copyright Year: 2018
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