Goldman Sachs to launch triple token projects by year’s end: Report
Key receivers
Goldman Sachs is targeting institutional clients with new token projects. The bank wants to differentiate its approach from its private blockchain competitors.
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Goldman Sachs is preparing to launch three tokenization projects by the end of the year, targeting major institutional clients, according to a Wednesday report from Fortune, citing Matthew McDermott, Goldman Sachs' global head of digital assets.
The upcoming development is part of a broader push into the digital assets sector. McDermott said the bank sees tokenization, turning real-world assets into digital tokens, as a key area of opportunity.
McDermott pointed out that the focus will be on creating marketplaces for tokenized assets, increasing the speed of transactions and diversifying the types of assets available for collateral. Three pilot projects, including the first in the US, are targeted for launch by the end of the year.
The bank's move into tokenization includes efforts in the US fund complex and European debt issuance. These initiatives aim to use private blockchains to comply with regulatory standards.
In upcoming projects, Goldman Sachs will also seek to differentiate its approach from competitors such as BlackRock and Franklin Templeton that target retail clients and focus on public blockchains.
In March, Goldman Sachs, BNI Mellon and other major institutions tested Canton's network of asset managers, banks and exchanges for seamless asset transactions.
Goldman Sachs has been involved in similar ventures, including a bond issuance with the European Investment Bank in 2022 and a sovereign green bond token for the Hong Kong Monetary Authority in 2023.
The announcement comes amid a broader revival in the crypto market, fueled by the launch of spot Bitcoin ETFs in the United States and growing interest in digital assets among institutional investors.
The early Bitcoin funds of the space have been a positive catalyst for the price of Bitcoin. At the time of writing, Bitcoin is trading at around $57,700, according to TradingView's data. Despite a 17% decline last month, Bitcoin is still up nearly 39% year-to-date.
McDermott said the approval of spot ETFs for Bitcoin and Ethereum would boost liquidity and attract more pension funds, insurance firms and other institutional investors to crypto. It also sees opportunities in tokenization where financial assets can be digitized and fractionalized, bringing in a wider group of investors and improving the exchange of money.
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