As a seasoned crypto investor with a decade-long journey navigating the digital asset landscape, this latest move by Goldman Sachs to spin out its cryptocurrency platform and focus on creating financial instruments on blockchain networks is not only intriguing but also validates the maturing of our industry.
According to Bloomberg’s report on November 18, Goldman Sachs is planning to establish a separate company that will specialize in developing and dealing with financial products based on blockchain technology, which includes cryptocurrency platforms.
Goldman Sachs’ investment bank is engaging with prospective collaborators to enhance the functionalities of its platform and create fresh products, as reported by Bloomberg, according to Matthew McDermott, their chief of Global Digital Assets.
According to reports, it is said that Electronic Trading Platform, known as Tradeweb Markets, may join forces as a strategic partner in the upcoming joint venture.
According to McDermott, it’s anticipated that the spinoff will likely take place within the following 12 to 18 months, assuming necessary regulatory clearances are granted. At this point, the plans seem to be in their initial development phase.
McDermott explained to Bloomberg that it’s beneficial for the market to possess something that is owned by the industry itself.
McDermott stated that Goldman Sachs plans to debut three novel tokenization services by the end of this year, both in the U.S. and Europe, due to a significant surge in client interest in cryptocurrencies.
According to a report, it appears that McDermott stated Goldman Sachs intends to develop platforms for trading tokens representing real-world assets (RWAs), with a primary focus on the “fund complex” within the U.S. and European debt sectors.
He added that the investment bank plans to target financial institutions, rather than retail investors, with its new products and will rely exclusively on permissioned blockchains. He said the RWA marketplace would differentiate itself with the speed of execution and by expanding the types of assets that can be used as collateral.
McDermott linked the recent surge in cryptocurrency to the continuous expansion of Exchange-Traded Funds (ETFs) specifically designed for digital assets.
Approximately a dozen Bitcoin (BTC) Exchange Traded Funds (ETFs) have been approved since January, when U.S. regulators gave their final approval. In July, U.S. regulators also granted clearance for several Ethereum (ETH) ETFs to be listed on American exchanges.
Goldman Sachs has been among the largest buyers of BTC ETFs in 2024.
There’s a growing interest in digital tokens representing real-world assets like T-Bills and money market instruments that provide stable returns. As of November 14th, the combined worth of these tokenized US treasury debts stands at around $2.4 billion, as reported by RWA.xyz.
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2024-11-18 18:46