Wall Street’s embrace of digital assets shows no signs of slowing down. In fact, they didn’t even have to tell us about it because the proof was so beautifully printed. This week, a US Securities and Exchange Commission (SEC) filing revealed that multinational investment bank Goldman Sachs has been quietly offering clients exposure to Ether (ETH) through Galaxy Digital, a crypto-focused financial services provider led by billionaire Mike Novogratz.
Of course, this is not the first time Goldman has partnered with Galaxy Digital to provide clients with a gateway to digital assets. In June 2021, the investment giant started trading Bitcoin (BTC) future projects in collaborate with Galaxy Digital. Like other financial services giants, Goldman Sachs saw the writing on the wall and realized that cryptocurrencies are an emerging asset class with lasting potential. Their customers really want to invest in cryptocurrencies.
This week’s Crypto Biz newsletter features classic storylines about a major Wall Street bank expanding its crypto and venture capital offerings that continue to pour hundreds of millions of dollars into blockchain startups. We also dive deeper into Binance’s new crypto portal.
Goldman Sachs is attracting customers with Galaxy Digital’s ETH fund
According to regulatory documents filed with the SEC, Goldman Sachs has started offering ETH investments to its customers through Galaxy Digital, which could open the door for wider adoption of digital assets by institutions. The Form D filing, filed by Galaxy Digital, lists Goldman Sachs as the recipient of a referral fee for referring clients to the Galaxy ETH Fund. According to the filing, Goldman is accepting a “minimum investment” of $250,000 per client for exposure to the investment product. Interestingly, the filing appeared on the SEC’s website just two days after Lloyd Blankfein, Goldman’s senior president, tweeted that he was “Always Open-minded About Crypto.”
Keep an open mind about cryptocurrencies, but with the US dollar surging and a clear reminder that governments can and will under certain circumstances freeze accounts and block payments, you Do you think cryptocurrencies will be available now? Didn’t see it in the price, so far….
– Lloyd Blankfein (@lloydblankfein) March 7, 2022
Bain Capital Ventures Sets Up Half a Billion Dollar Fund for Crypto Projects
The crypto economy has received renewed interest from the venture capital community after Bain Capital Ventures, a Massachusetts-based asset management firm, announced it create a fund of $560 million exclusively for blockchain startups. According to Bloomberg, the company has invested $100 million in 12 undisclosed projects. Cointelegraph has managed to secure the backing of a Bain Capital Ventures rep, who informed us that the crypto fund is focused on supporting open internet infrastructure – which could mean Web3 . I’ve spent the past six months screaming on the rooftop that the source of venture capital is changing composition of the cryptocurrency industry. Excluding the upside for crypto assets, VC inflow is one of the most bullish indicators we have for the industry right now.
Binance Focuses on Crypto Payments with New Subsidiary Bifinity
As the world’s largest cryptocurrency exchange by trading volume, Binance has plenty of resources to address the growing needs of the digital asset community. This week, the company led by Changpeng Zhao unveiled Bifinity, a fiat-to-crypto payment onramp allows merchants to provide cryptocurrency services to their customers. Bifinity has secured partnerships with crypto-focused platforms such as Safepal and Zilliqa, as well as payment solutions Paysafe and Checkout.com. Binance has been explore fiat gateways at least since 2020 and only recently complete the acquisition of Swipe, a leading crypto Visa card provider. (To be honest, however, partnering with Zilliqa — a blockchain sharding developer — was a bit of a surprise.)
Andreessen Horowitz Invests $70 Million in Ethereum Staking Protocol Lido
Silicon Valley venture firm Andreessen Horowitz created another big shock in the crypto market by invest $70 million in Ethereum staking solution Lido Finance. The injection will be used by Lido developers to further support the adoption of staking solutions on Ethereum 2.0, which has been renamed to consensus class. Andreessen likes Lido because the protocol makes it easier for users to staking Ether without having to meet the 32 ETH threshold to become a network validator. While 32 ETH wasn’t much a few years ago, it now sets you back almost $90,000 at current prices.
Glad to share that @ a16z invested 70 million dollars in @LidoFinance, one of the easiest ways to stake ETH and other PoS assets, and we used Lido to stake a portion of our ETH holdings on the Beacon chain. More words @DarenMatsuoka & @_PorterSmith: https://t.co/vc2tzDJ3mS
– cdixon.eth (@cdixon) March 3, 2022
Before you leave…
The Terra ecosystem continues to generate a lot of buzz in the crypto community. This week, the network’s Terra native token (MOONLIGHT) hit a new all-time high after increasing 30% in just three days. The latest version of Market report dig deep into the growing Terra ecosystem projects. You can watch the replay to learn more about interesting projects like StarTerra, Loop Finance and Mirror Protocol.
Crypto Biz is your weekly beat of the business behind blockchain and crypto delivered directly to your inbox every Thursday.
https://cointelegraph.com/news/crypto-biz-goldman-sachs-tip-toes-into-eth-mar-4-10 Goldman Sachs Starts Getting Into ETH, March 4-10