Goldman Sachs Group is currently evaluating how to own and invest in Bitcoin while making sure it is regulated in its approach, according to recent statements from the bank’s COO.
What Happened: According to Reuters, John Waldron, president and chief operating officer at Goldman, said that the bank is in talks with regulators and central banks to determine how banks should be regulated when dealing with digital money.
“Client demand is rising,” noted Waldron, adding, “We are regulated on what we can do. We continue to evaluate it … and engage on it.”
He also hinted that a Goldman Bitcoin ETF could be on the horizon as the bank has issued a request for information to explore digital asset custody.
Although Goldman can custody digital assets, it “can’t principle them,” Waldron told Reuters. Resolving these regulatory issues will likely be high up on the agenda for the bank, as Waldron forecasted an impending “explosion” in the use of digital currency worldwide.
“The pandemic has been a significant accelerant,” Waldron said. “There is no question in our mind there will be more digital commerce … and (use of) digital money.”
Why It Matters: More banks have announced support for cryptocurrency in the past few months. Last month, Bank Of New York Mellon announced support for Bitcoin and digital asset custody services, which it expects to roll out later this year.
More recently, JPMorgan Chase said it would offer investors a debt instrument titled “Cryptocurrency Exposure Basket,” which allocates funds towards 11 Bitcoin proxy stocks.
Price Action: Bitcoin recorded its sixth straight day of upward momentum as it crossed $57,000 once again earlier today. The market-leading cryptocurrency was trading at $54,850 at the time of writing.
This story originally appeared on Benzinga. © 2021 Benzinga.com.
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