To capitalize on the growing interest in the crypto industry, the banking giant Goldman Sachs is gearing up to enter the tokenization space, with three offerings set to launch later this year.
Goldman Sachs aims to capitalize on the tokenization trend
According to a fortune reportMathew McDermott, global head of digital assets at Goldman Sachs, has revealed the bank’s intentions to expand its crypto offerings, with a focus on the tokenization sector.
Tokenization involves issuing “real-world assets” such as money market funds and real estate holdings on public blockchains like Ethereum or Solana, leading the bank to plan to launch three tokenization projects by the end of the year in partnership with major clients, including its first project in the United States.
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While other financial institutions such as BlackRock launched their first tokenized fund on the Ethereum blockchain in March, McDermott stressed that success depends on creating products that investors want.
To that end, Goldman Sachs recently hosted a digital assets summit in London, attended by over 500 clients. During the Summit, McDermott emphasized the importance of providing investors with these “fundamentally” game-changing solutions. asset management strategiesstating: “There is no point in doing this just for the sake of it.
According to the report, Goldman Sachs’ views on crypto differ within the institution. McDermott acknowledged that varying perspectives are to be expected within an institution of its size.
While Goldman Sachs CIO Sharmin Mossavar-Rahmani expressed skepticism about crypto as an investment asset class, McDermott emphasized the bank’s active involvement in crypto from an institutional perspective, including trading cash-settled crypto derivatives on behalf of clients and its participation in the recently approved ETF Markets.
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How BlackRock succeeds released its treasury fund, BUIDL, on the Ethereum blockchain has attracted significant attention; McDermott noted that Goldman Sachs is primarily targeting institutional clients and intends to work exclusively with private blockchains due to “regulatory constraints.”
While McDermott refrained from disclosing specific details about the upcoming tokenization projects set to debut this year, he did reveal that one project would focus on the U.S. fund complex. Meanwhile, another would focus on debt issuance in Europe.
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Looking ahead to the US presidential election and the potential for a shift in government attitude regulatory stance Regarding crypto on the horizon, McDermott believes that Goldman Sachs’ opportunities in the space could expand further. This could include activities such as holding spot crypto assets and exploring execution and subcustody services, subject to approval.
At the time of writing, the largest cryptocurrency on the market, Bitcoin (BTC), was trading at US$57,580, showing a slight drop of 0.5% in the 24-hour period, aiming to consolidate above this level.
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