Goldman Sachs, a longstanding leader in banking, is moving to enhance its cryptocurrency initiatives by the end of this year. Fortune was the first to publish the news, quoting Goldman’s Digital Assets Global Head Mathew McDermott.
Mathew McDermot noted that the firm is planning to launch three significant tokenization projects. Tokenization involves converting real-world assets like real estate and money market funds into digital tokens on blockchain platforms. These projects, with one being the first of its kind in the U.S., aim to cater to the growing interest from major clients.
McDermot said,
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.
The push into tokenization by Goldman Sachs comes amidst a general resurgence in the cryptocurrency market, highlighted by the successful launch of Bitcoin ETFs earlier this year. Despite differing opinions within Goldman Sachs regarding the viability of cryptocurrencies as an investment class, McDermott highlighted the bank’s active involvement in crypto from an institutional angle, including trading crypto derivatives and participating in ETF markets.
Tokenization is central to Goldman Sachs’ strategy, demonstrated by its previous efforts, such as collaborating on bond issuances and launching a platform specifically for asset tokenization in 2023. McDermott contrasts Goldman Sachs’ focus on institutional and private blockchain uses with other firms like BlackRock, which target retail customers and use public blockchains.
Looking ahead, McDermott is optimistic about expanding Goldman Sachs’ crypto activities, potentially influenced by upcoming U.S. regulatory changes. He anticipates opportunities that could include holding and possibly trading spot crypto assets, pending regulatory approval.
Interestingly, this shift towards digital assets is not confined to traditional banking giants. For instance, MANTRA Chain, a network dedicated to the tokenization of real assets, is making waves in the Middle East. The company recently partnered with MAG, a leading real estate developer in the UAE, to tokenize $500 million in real estate assets.
