Goldman Sachs to launch 3 new token products this year – Report

Goldman Sachs To Launch 3 New Token Products This Year - Report


Goldman Sachs is preparing to launch three new token products in the United States and Europe at the end of this year due to “a significant increase in customer interest” in crypto, according to Fortune, which published an interview with Matthew McDermott, the global head of the investment bank. Digital Assets, on July 10.

McDermott declined to disclose details, but Goldman Sachs plans to create marketplaces for tokenizing real-world assets (RWAs) and will focus on a “complex of funds” in the US and European debt markets, the report said.

McDermott added that the investment bank plans to target financial institutions rather than retail investors with its new products, which will reportedly rely on permissioned blockchains. He said that the RWA market place distinguishes itself by the speed of execution and the expansion of the types of assets used as collateral.

McDermott attributed the “renewed momentum in crypto” to the proliferation of exchange-traded funds (ETFs) for digital assets. Nearly a dozen Bitcoin (BTC) ETFs have been listed since January, when US regulators gave the investment vehicles their final green light. Regulators are now reviewing registration filings for several Spot Ether (ETH) ETFs, which analysts expect to begin trading as soon as this month.

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Related: Ethereum ETFs ‘closer to finish line' – Bitwise exec

Funds focused on RWAs are gaining traction in the U.S. This is especially true for funds that work in money market instruments, such as the BlackRock Dollar Institutional Digital Liquidity Fund (BUIDL), which previously reached $500 million in assets under management (AUM) this week. Franklin Templeton's Onchain U.S. Government Fund ( FOBXX ) ranks second with nearly $400 million in assets under management.

Number of real-world asset transactions on-chain as of December 2023. Source: Dune Analytics

Related: BlackRock tokenized treasury fund BUIDL reaches $500M

According to Fortune, the investment bank's exposure to crypto could expand further in the coming months if the upcoming presidential election softens the US regulatory stance on the industry.

“Once we're approved as an organization, there will be other things we want to do, like executions and maybe other things under surveillance,” McDermott reportedly said.

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