Key Takeaways
Goldman Sachs targets institutional clients with new tokenization projects.
The bank wants to differentiate its approach from competitors with private blockchains.
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Goldman Sachs is gearing up to launch three tokenization projects by the year’s end, targeting major institutional clients, according to a Wednesday report from Fortune, citing Goldman Sachs’ global head of digital assets Mathew McDermott.
The coming development is part of a broader push into the digital assets sector, said McDermott. He highlighted the bank’s focus on creating marketplaces for tokenized assets, enhancing transaction speeds, and diversifying the types of assets available for collateral.
The bank’s move into tokenization includes efforts in the US fund complex and European debt issuance. These initiatives aim to leverage private blockchains to comply with regulatory standards.
With the upcoming projects, Goldman Sachs also seeks to distinguish its approach from competitors like BlackRock and Franklin Templeton, which target retail customers and focus on public blockchains.
In March, Goldman Sachs, BNY Mellon, and other major institutions tested the Canton Network for seamless tokenized asset transactions, involving numerous asset managers, banks, and exchanges.
Goldman Sachs has participated in similar ventures, such as a bond issuance with the European Investment Bank in 2022 and the tokenization of a sovereign green bond for the Hong Kong Monetary Authority in 2023.
The announcement comes amid a broader resurgence in the crypto market, spurred by the launch of Bitcoin ETFs and a growing interest in digital assets among institutional investors.
Despite differing opinions within Goldman Sachs regarding the viability of crypto as an investment, the firm continues to expand its digital asset offerings, driven by client demand and a favorable market environment.
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