Text size
Dreamstime
Add
Goldman Sachs
to the list of companies putting Bitcoin and cryptocurrencies on the front burner.
The investment bank soon will help wealthy clients invest in digital assets, creating a new Digital Assets Group within its private wealth management division. Mary Rich was named as global head of the new unit, according to a memo to employees released Wednesday and reviewed by Barron’s.
According to the memo, Rich will work closely with Goldman advisors to inform clients about blockchain and digital assets and develop investment offerings and services.
“As a firm, we believe in the possibility of blockchain technologies, and it is imperative that we continue to drive innovation and deliver solutions to our clients,” the memo says.
Not long ago, Goldman decided to broaden the scope of its business and its client base, boosting the profile of its consumer banking operatio, and its services for wealthy investors.
It would join
Morgan Stanley
(MS) in opening client access to digital assets. CNBC reported on Goldman’s move earlier Wednesday.
Bitcoin has gained acceptance in mainstream circles after a meteoric increase in value over the last year. With more people clamoring to own it—along with associated funds or other crypto assets—financial firms are scrambling to meet demand.
On Tuesday,
PayPal
(PYPL) said its users will be able to use cryptocurrency to pay for merchandise at millions of retailers.
Visa
(V) and
Mastercard
(MA) are also planning to process crypto transactions. Fidelity Investments is seeking approval for a Bitcoin exchange-traded fund.
Companies such as
Square
(SQ) and
Tesla
(TSLA) have invested in Bitcoin, and Tesla said people could use it to buy its electric vehicles.
Meanwhile, nonfungible tokens, or NFTs—the current investing fad in the world of art and collectibles—have raked in more than $200 million in the past month.
Goldman’s Rich told CNBC clients are looking at crypto as a hedge against inflation and some “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.”
Bitcoin is having its best quarter since 2013, according to Coindesk. At more than $59,000, it is roughly double where it began the year. The
S&P 500
is up 6% this year.
Write to liz.moyer@barrons.com
