pwshub.com

Goldman Sachs Embraces Crypto With Three New Initiatives In The Pipeline

To capitalize on the growing interest in the crypto industry, banking giant Goldman Sachs is preparing to enter the tokenization sector, with three offerings expected to launch later this year. 

Goldman Sachs Aims To Capitalize On Tokenization Trend

According to a Fortune report, Mathew McDermott, Global Head of Digital Assets at Goldman Sachs, revealed the bank’s intentions to expand its crypto offerings, focusing on the tokenization sector. 

Tokenization involves issuing “real-world assets,” such as money market funds and real estate holdings on public blockchains such as Ethereum or Solana, leading the bank to plan to launch three tokenization projects by the end of the year in partnership with major clients, including its first project in the United States.

While other financial institutions, such as BlackRock, launched its first tokenized fund on the Ethereum blockchain in March, McDermott emphasized that success depends on creating products that investors want.

To that end, Goldman Sachs recently hosted a digital asset summit in London attended by more than 500 clients. During the Summit, McDermott emphasized the importance of providing investors with these solutions that can “fundamentally” change asset management strategies, stating, “There’s no point in doing it just for the sake of it.

According to the report, Goldman Sachs’ views on crypto differ within the institution. McDermott acknowledged that varying perspectives are expected within an institution of their size. 

While Sharmin Mossavar-Rahmani, CIO for Goldman Sachs, voiced skepticism about crypto as an investment asset class, McDermott emphasized the bank’s active involvement in crypto from an institutional perspective, including trading cash-settled crypto derivatives on behalf of clients and their participation in the recently approvedETF markets.

Crypto Opportunities Ahead Of US Presidential Election

As BlackRock successfully launchedits treasury fund, BUIDL, on the Ethereum blockchain, it has garnered significant attention; McDermott noted that Goldman Sachs primarily targets institutional clients and intends to work exclusively with private blockchains due to “regulatory constraints.” 

Although McDermott refrained from disclosing specific details about the upcoming tokenization projects set to debut this year, he revealed that one project would focus on the US fund complex. At the same time, another would center around debt issuance in Europe.

Looking ahead, with the US presidential election and the potential for a shift in the government’s regulatory stance on crypto on the horizon, McDermott believes that Goldman Sachs’ opportunities in the space could expand further. This could include activities like holding spot crypto assets and exploring execution and sub-custody services, subject to approval.

Crypto
The 1-D chart shows BTC’s sideways price action over the past 24 hours. Source: BTCUSD on TradingView.com

As of this writing, the largest cryptocurrency on the market, Bitcoin (BTC), was trading at $57,580, presenting a slight decrease of 0.5% in the 24-hour time frame, aiming to consolidate above this level. 

Featured image from DALL-E, chart from TradingView.com

Source: newsbtc.com

Related stories
6 days ago - Goldman Sachs' tokenization projects could significantly accelerate institutional adoption of digital assets, reshaping financial markets. The post Goldman Sachs to roll out trio of tokenization projects by end of year: Report appeared...
6 days ago - Banking giant Goldman Sachs is reportedly preparing to expand its crypto services with a focus on the tokenization of real-world assets (RWAs). Speaking to Fortune, Goldman’s digital assets global head Mathew McDermott says the bank has...
2 weeks ago - Macro guru and Real Vision CEO Raoul Pal says that Solana (SOL) will lead the next market expansion for digital assets. In a new video update, the former Goldman Sachs executive tells his 94,200 YouTube subscribers that the crypto market...
3 weeks ago - Former Goldman Sachs executive Raoul Pal believes that a period of sustained uptrend is coming for Bitcoin (BTC) and the rest of the crypto market. In a new interview with crypto trader Scott Melker, the macro guru points out that...
1 week ago - US banking giant Goldman Sachs just issued an alert to investors. In a new note to clients, the firm’s strategists say a series of fundamental factors suggest a market correction is on the horizon, reports Investing.com. Goldman points to...
Other stories
8 minutes ago - Ethereum is likely gearing up to outrun Bitcoin (BTC) after the launch of spot ETH exchange-traded funds (ETFs), according to analytics firm Kaiko. In a new report, Kaiko says the “mood in crypto markets is much changed” since May when...
8 minutes ago - The anonymous crypto analyst pullbacksignal has published a technical analysis of Shiba Inu (SHIB) via TradingView, which attests to the cryptocurrency a strong upside potential. In the 4-hour chart against Tether (USDT), the Shiba Inu...
8 minutes ago - Revisiting the Fed’s last economic projections ahead of next week’s FOMC meeting.
8 minutes ago - July 16, 2024 – Majuro, Marshall Islands Multipool, a leading innovator in the blockchain and cryptocurrency industry announces strategic partnership with Tokinvest with the goal of transforming tokenized RWA (real-world asset) trading....
49 minutes ago - Mining stocks have exploded 29% this month, but they now trade fairly high compared to the BTC they’re likely to mine.