In a recent conference in New York, Goldman Sachs’ head of digital asset markets Justin Schmidt commented on the state of the cryptocurrency market – and offered valuable optimism.
Allowing that Goldman Sachs, one of the leading banking institutions in the United States, cannot hold cryptocurrency tokens owing to regulatory limitations, Shmidt advised that “there are things that are more limited in terms of what [they] can offer” despite the fact their clients are “quite curious” about tokens in the cryptomarket. This comes according to a Bloomberg report.
He explained that one of the key components to tap into is custody:
“Custody is part of an overall integrated system where different parts need to work well with each other and safely with each other and you have to be able to trust all the different parts in that chain, from buying something to transferring it to storing it in for the long-term.”
He added that once the regulations and issues related to custody are resolved, the cryptocurrency isn’t yet out of the woods. There might still be trust-issues regarding crypto-exchanges and the risk of hacking. However, despite the state of the market and any obstacles in the way, Shmidt still thinks there is a healthy development in the market. He said:
“What I really want to see is the continued research and development of actual products and services. In many ways, the rampant speculation that has been quelled over the past several months is really healthy for the ecosystem and I very much look forward to companies that are actually providing institutional-grade products and services.”