Goldman Sachs, the wall street giant has shown it incline towards cryptocurrency at plenty of occasion. In fact the firm was amongst the first institutional investor vocally enter the market and defend its merits. Goldman Sachs were reportedly planning a trading desk to connect their clients with cryptocurrencies. Now that the firm has joined hands with Bakkt the supposed trading desk has evolved into a custody service that will enable the clients to store bitcoin.
Goldman Sachs has yet to officially confirm or deny the possibilities surrounding their cryptocurrency venture. Not even an inclining of their plans or what they creating, discussing, or possibly launching, was disclosed. It seems that what Goldman Sachs was planning to support institutional offerings that suit their bill. In their search of the best option for supporting their digital asset offerings they landed and entrusted Bakkt.
According to Abacus Journal, Bakkt with its infrastructure was a simple and easy choice for the firm:
“All of the pipes, levers, and ‘factories’ that are being constructed to process billions of crypto trades per day will eventually all work together. Bakkt, Fidelity, Nasdaq, ErisX – all of them will eventually clear trades from a place like Goldman Sachs on a daily basis. These firms are just providing access and ‘regulatory insurance’ via custody and some warehousing services. Goldman choosing to work with Bakkt is a nice headline today but may be irrelevant by late 2019.”
Bakkt is developed by ICE, which invites Goldman Sachs faith in the product. The firm does not view Bakkt as a ‘new’ product offering, it simply deems it as an extension of NYSE and other exchange brands that ICE created and supports. In simpler words, Bakkt entails a lack of risk that is connected with other exchange platforms like Bitmex, Bitfinex and others that are unrelated to ICE.
Moreover the firm has stepped ahead and advised their clients to stay away from such exchanges due to regulatory and AML reasons. They asked them to rather choose the “off-book” OTC crypto network spanning across the US, Asia, and Eastern Europe.
It is significantly important to note that the amalgamation of Bakkt’s ecosystem into Goldman Sachs’s infrastructure will regulate the cryptocurrency industry towards a more stable and less risky market for users.