Goldman Sachs eyes tokenization projects for institutional clients by year-end Goldman Sachs eyes tokenization projects for institutional clients by year-end
The Goldman Sachs' executive also hinted that the bank could expand into crypto custody if the regulatory environment changes.
2 min read
Updated: Jul. 10, 2024 at 11:01 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Goldman Sachs is preparing to launch three tokenization projects by year-end for major institutional clients, the firm’s global head of digital assets, Mathew McDermott, told Fortune Crypto in a July 10 interview.
McDermott explained that tokenization, which is the process of converting real-world assets (RWA) into digital tokens, presents a critical opportunity for the bank due to rising client demand for such products.
He stated:
“There’s no point doing it just for the sake of it. The definite feedback is, this is something that actually will change the nature of how they can invest.”
Speaking on the projects, he stated that they would be focused on marketplaces for tokenized assets, speed up transactions, and diversify collateral assets. Meanwhile, he also revealed that one of the projects will target the US fund complex, while another will focus on Europe’s debt issuance.
Goldman Sachs’ move reflects the growing institutional interest in tokenizing real-world assets. The trend has seen significant adoption, exemplified by BlackRock’s BUIDL fund, which surpassed $500 million in assets under management in less than six months despite broader market challenges.
Crypto custody hints
McDermott hinted that the firm’s involvement in the crypto sector might expand to include custodial services if the government’s regulatory approach changes.
He said:
“There could be other things that we as a firm would naturally be interested, subject to approval, to do, like execution and maybe sub-custody.”
As the US presidential election approaches, crypto has become a key political issue. The leading candidates—President Joe Biden and former President Donald Trump—have shown significant interest in the industry, although their views differ.
While Biden has begun to soften his administration’s previous stance toward the sector, Trump has publicly voiced strong support for the industry, promising to create an environment fostering growth.
Due to this, many crypto stakeholders have publicly backed Trump’s presidency. They believe he would implement regulatory changes that would allow the industry to thrive and protect it from strict financial regulators like the US Securities and Exchange Commission (SEC).
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Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Goldman Sachs
Goldman Sachs a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.
BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
Joe Biden, byname of Joseph Robinette Biden Jr., is an American politician and the 46th and current president of the United States.
A businessman, politician, and media personality, Donald John Trump served as the 45th president of the United States from 2017 to 2021.