Goldman Sachs Embraces Crypto With Three New Initiatives In The Pipeline

Source Newsbtc
Jul 11, 2024 03:00

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 approved ETF markets.

Crypto Opportunities Ahead Of US Presidential Election

As BlackRock successfully launched its 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

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

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Copper Long-term forecast: Will Copper Price Expected To Soar In 2023?The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
Author  Mitrade
The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
placeholder
Understanding the first crypto market crash of 2024 and what to expect nextThe 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
Author  FXStreet
The 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
placeholder
Natural Gas sinks to pivotal level as China’s demand slumpsNatural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
Author  FXStreet
Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
placeholder
Dogecoin Big Rally Ahead: Analyst Sees ‘Most Beautiful’ Chart PatternOnce again taking the stage in the crypto scene is the popular meme coin Dogecoin (DOGE). Renowned crypto analyst JD has lately revealed his very positive view of DOGE, which has excited traders and investors.
Author  NewsBTC
Once again taking the stage in the crypto scene is the popular meme coin Dogecoin (DOGE). Renowned crypto analyst JD has lately revealed his very positive view of DOGE, which has excited traders and investors.
placeholder
Ethereum ETF: Buy the rumor, sell the news?Spot ether ETFs, which will enable investors to buy the second most popular cryptocurrency just like stocks, are set to start trading in the U.S. next week.
Author  Investing.com
Spot ether ETFs, which will enable investors to buy the second most popular cryptocurrency just like stocks, are set to start trading in the U.S. next week.
goTop
quote