Goldman Sachs to launch crypto platform: Report
Goldman Sachs is preparing to spin off its cryptocurrency platform to create a new company focused on creating and trading financial instruments on blockchain networks, Bloomberg reported on November 18.
The investment bank is talking to potential partners to add capabilities to the platform and develop new offerings, Matthew McDermott, Goldman's global head of digital assets, told Bloomberg.
Tradeweb Markets, an electronic trading platform, is said to be one of the new entity's strategic partners.
McDermott said the spinoff is expected to be completed in the next 12 to 18 months, pending regulatory approvals. Plans are said to be in the early stages.
“Having something industrialized is in the best interest of the market,” McDermott told Bloomberg.
Source: RWA.xyz
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In July, McDermott Goldman Sachs is preparing to launch three new token products in crypto this year in the United States and Europe “due to a significant increase in customer demand”.
McDermott reported that Goldman Sachs plans to create marketplaces for real world assets (RWAs) and will focus on the “complex of funds” in the US and European debt markets, according to the report.
He added that the investment bank plans to target financial institutions with its new products, rather than retail investors, and will rely only 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 attributes the proliferation of exchange-traded funds (ETFs) to digital assets as a result of “crypty's renewed momentum.”
Nearly a dozen Bitcoin BTC ETFs have been listed since January, when US regulators gave the final green light to the investment vehicles. In July, regulators green-lighted several spot Ether ETFs to list on US exchanges.
Goldman Sachs is among the buyers of BTC ETFs in 2024.
Demand for real-world assets (RWAs) that offer lower-risk yields than T-Bills and other money market instruments is increasing.
Tokenized US Treasury debt will command about $2.4 billion in total value as of November 14, according to RWA.xyz.
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