Key Takeaways:
- Goldman Sachs plans to spin off its crypto platform, focusing on blockchain-based financial instruments, with completion expected in 12-18 months pending regulatory approval.
- The spin-out will likely involve partnerships, including Tradeweb Markets, and cater to institutional clients via permissioned blockchains.
- Goldman remains committed to tokenization, expanding its offerings to include marketplaces for tokenized real-world assets like U.S. Treasury bills, amidst rising ETF-driven interest in digital assets.
Goldman Sachs is set to spin off its cryptocurrency platform, creating a new company focused on blockchain-based financial instruments, Bloomberg reported on Nov. 18.
Mathew McDermott, Goldman’s global head of digital assets, confirmed the plans, targeting a 12-18 month timeline pending regulatory approval.
Goldman Sachs is speaking with potential partners as it plans to spin out its digital-assets platform into a new company for large financial firms to create, trade and settle financial instruments via blockchain technology. https://t.co/uq3XsfyDZK
— Bloomberg Crypto (@crypto) November 18, 2024
Collaboration is key, with Tradeweb Markets, an electronic trading platform, cited as a potential partner.
The spin-off aims to develop industry-owned, secure blockchain solutions for financial institutions.
Goldman Sachs has also advanced tokenization efforts, unveiling marketplaces for tokenized real-world assets like U.S. Treasury bills.
These projects cater to institutional clients, leveraging permissioned blockchains for security and efficiency.
McDermott linked rising interest in tokenization to the popularity of digital asset ETFs, with Goldman a significant buyer of Bitcoin ETFs in 2024.
Tokenized U.S. Treasury debt now holds $2.4 billion in total value locked, highlighting the demand for low-risk, yield-generating instruments.
These initiatives underline Goldman’s commitment to blockchain innovation and its strategic role in shaping the financial sector’s future.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
His extensive experience and features in top-tier publications like Forbes and CNN underscore his deep understanding of the crypto world and its future potential.
Check Adam out on: