Investment banking giant Goldman Sachs is considering launching a separate entity for its blockchain-based digital assets platform. In an interview, Goldman Sachs’ Global Head of Digital Assets, Mathew McDermott, stated that the firm is discussing with multiple market participants to further develop its blockchain platform and uncover new commercial opportunities.
Reportedly, banks’ interest in leveraging blockchain technology for trading is often hindered by the limitations of the financial markets’ underlying technology infrastructure. Banks’ widespread adoption of blockchain technology for trading assets like fiat currencies and bonds requires upgraded technology. Acknowledging the necessity, Goldman Sachs has set out plans to launch a crypto platform, with the long-term goal projected within the next 12 to 18 months. While the project is in its early stages, McDermott stated, “It’s in the best interest of the market to have something that is industry-owned.”
Despite the increasing demand for blockchain within the financial sector, there is a general hesitation among banking institutions to adopt a platform under another financial giant. However, Goldman Sachs has formally announced its decision to move forward with the project, stating,
Establishing a new, standalone company independent of Goldman Sachs and its Digital Assets business will help to provide the future runway for digital financial services by ensuring a fit-for-purpose, long-term solution.
Enhancing the narrative, McDermott stated that Goldman Sachs plans to enable secondary transactions for private digital asset companies. This could provide clients with liquidity options and buyers with discounted access to private markets. As per McDermott’s statement, Goldman Sachs aims to expand its service to the crypto space. However, regulatory uncertainties and bureaucratic processes remain a serious concern in the platform’s prospects.
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Goldman Sachs’ standalone crypto platform is poised to have a significant impact on the crypto space. With a secure and compliant crypto trading environment, the platform could draw the attention of a large number of institutional investors. It is evident that Goldman Sachs’ initiative highlights its commitment to shaping the future of cryptocurrencies and blockchain technology.
