Last month New York-based global investment bank Goldman Sachs announced that it is providing its institutional clients with premium crypto related research reports from crypto news, data and research firm, the Block.
Goldman’s New Research Partnership
In late November, Goldman Sachs’ hedge fund and other institutional clients began receiving premium crypto research reports published by the Block via Goldman’s Marquee digital platform. The first crypto research report available to Goldman clients was an overview of decentralized finance (DeFi) protocols on the Ethereum network.
Goldman explained the new arrangement, saying, “In an effort to provide relevant digital assets content and research, GS Digital Assets is now providing exclusive access to select reports from The Block Research. While these typically require a paid subscription, clients can access them for free with a Marquee account.”
The move by Goldman is in response to the growing institutional interest in cryptocurrencies, other digital assets, and block chain technologies. This is also consistent with efforts by Goldman’s peers, Merrill Lynch and Morgan Stanley, who both announced the formation of research teams covering digital assets earlier this year.
Goldman Sachs’ Marquee platform is a digital marketplace providing institutional clients with access to Goldman’s proprietary pricing data, risk analytics, research and market insights, and trading solutions. According to Goldman, Marquee has 50,000 active monthly users.
While the cryptocurrency market totaled $1.6 bln in 2021, digital assets more broadly represent a $2 trillion+ market value with 200 million+ users, and have the potential to transform every industry by improving efficiency and reducing friction across transactions.
In response to this growth, and following the launch of proprietary crypto research groups at both Merrill Lynch and Morgan Stanley, Goldman Sachs’ partnership with the Block to provide the firm’s research to their clients makes considerable sense. This arrangement is probably more cost effective for Goldman than hiring their own crypto research team.
As we have said before, it is not surprising that Goldman Sachs jumped into the crypto research pool, though they did so by leveraging a third party’s content rather than producing their own. The big question is when and how are the other sell-side investment banks planning to cover block chain technologies and digital assets for their buy-side clients? We suspect that other banks will be rolling out their own coverage of these markets in 2022.