Goldman Sachs, the global powerhouse in investment banking, is leveling up its digital horsepower with a strategic focus on spinning off its cryptocurrency platform. This vision involves possible collaborations with potential partners to augment the platform’s reach and devise new blockchain-based offerings.
Expected to buckle up within the next 12 to 18 months, the proposed transition is built on the pivot to blockchain networks essentially to create and facilitate trading of financial instruments. Among the confirmed associates would be Tradeweb Markets, a popular electronic trading platform. The process, subject to regulatory approvals, is still shaping up.
According to Mathew McDermott, Goldman’s global head of digital assets, the move aligns with establishing an industry-owned platform. The aspiration took root following a significant surge in interest for crypto among Goldman’s clientele. The investment giant is aiming to introduce three novel tokenization products in the United States and Europe.
The targeted domains for this initiative include tokenized real-world assets and financial institutions. By leveraging its US and European debt markets, Goldman plans to expand the assets used as collateral alongside ensuring a swift execution rate. The new perspectives primarily aim at financial institutions instead of retail investors and will rely entirely on permissioned blockchains.
Goldman Sachs has been actively involved in purchasing Bitcoin ETFs since their final approval in the U.S. noting the continued progress of ETFs for digital assets. Furthermore, the tokenization of U.S. treasury debt, currently valued at approximately $2.4 billion, hints at a promising future for the industry.