Banking giant Goldman Sachs is preparing to launch new digital asset services for its high net worth clients.
According to a report from CNBC, Mary Rich, Goldman’s global head of digital assets for the bank’s private wealth management division, states that there are a growing number of clients who are now looking to the crypto space to update their portfolios.
“We are working closely with teams across the firm to explore ways to offer thoughtful and appropriate access to the ecosystem for private wealth clients, and that is something we expect to offer in the near term,” Rich said in an interview.
The bank is reportedly set to offer a “full-spectrum” of investments in Bitcoin and digital assets, “whether that’s through the physical Bitcoin, derivatives, or traditional investment vehicles,” she said.
According to the executive, the growing demand for digital assets from high net worth clients partially stems from a desire to hedge portfolios against inflation.
“There’s a contingent of clients who are looking to [cryptocurrencies] 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.”
CNBC’s sources say that Goldman is in the process of securing approvals from various regulators, including the U.S. Securities and Exchange Commission (SEC), and the New York Department of Financial Services.
Goldman reportedly wants to follow in the footsteps of fellow American banking titan Morgan Stanley in offering crypto services to its clients. Morgan Stanley is already one of the largest institutional holders of BTC, and some analysts have speculated that the bank has the capital and horsepower to eventually be the biggest holder of BTC in the world.
For now, the regulatory climate has forced most banks to quietly tiptoe into the industry instead of diving right in. Goldman’s Rich says the bank is likely in it for the long run, however.
“We’re still in the very nascent stages of this ecosystem; no one knows exactly how it will evolve or what shape it will be,” Rich said. “But I think it’s fairly safe to expect it will be part of our future.”