{"id":241686,"date":"2024-07-10T13:47:55","date_gmt":"2024-07-10T13:47:55","guid":{"rendered":"https:\/\/michigandigitalnews.com\/index.php\/2024\/07\/10\/goldman-sachs-to-launch-three-tokenization-projects-by-end-of-year-says-digital-assets-chief-a-renewed-momentum-in-crypto\/"},"modified":"2025-06-25T17:14:59","modified_gmt":"2025-06-25T17:14:59","slug":"goldman-sachs-to-launch-three-tokenization-projects-by-end-of-year-says-digital-assets-chief-a-renewed-momentum-in-crypto","status":"publish","type":"post","link":"https:\/\/michigandigitalnews.com\/index.php\/2024\/07\/10\/goldman-sachs-to-launch-three-tokenization-projects-by-end-of-year-says-digital-assets-chief-a-renewed-momentum-in-crypto\/","title":{"rendered":"Goldman Sachs to launch three tokenization projects by end of year, says digital assets chief: ‘A renewed momentum in crypto’"},"content":{"rendered":"

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As its peers in traditional finance push deeper into crypto\u2014including BlackRock\u2019s Bitcoin ETF<\/a> and Fidelity\u2019s trading platform<\/a>\u2014Goldman Sachs<\/a> is preparing to make a move of its own. This comes as the 150-year-old banking behemoth is seeing a major uptick in interest from clients, digital assets global head Mathew McDermott told Fortune<\/em>.<\/p>\n

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McDermott says Goldman Sachs intends to expand its crypto offerings, including ambitious initiatives in the red-hot sector of tokenization, where so-called \u201creal world assets\u201d such as money market funds and real estate holdings are issued on public or private blockchains. According to McDermott, Goldman Sachs is set to launch three tokenization projects by the end of the year with major clients, including its first in the U.S.<\/p>\n

While BlackRock<\/a> and Franklin Templeton are also testing the tokenization waters, McDermott said the key to success will be creating products that investors want, which is why the bank recently held a digital assets summit in London attended by over 500 clients. \u201cThere\u2019s no point doing it just for the sake of it,\u201d he told Fortune<\/em>. \u201cThe definite feedback is, this is something that actually will change the nature of how they can invest.\u201d<\/p>\n

Differing views<\/h2>\n

After a deep \u201ccrypto winter\u201d set off by the collapse of FTX, markets came roaring back this year, buoyed by the January launch of Bitcoin ETFs. According to financial filings, Goldman Sachs took on a key role<\/a> in the ETF offerings by serving as an authorized participant, meaning it would help with the redemption and creation mechanism for the investment vehicles (including for BlackRock\u2019s IBIT ETF).<\/p>\n

McDermott described the launch of the ETFs as a \u201crenewed momentum in crypto,\u201d though the view is not shared across his bank. In April, the Wall Street Journal<\/em> published<\/a> an interview with Sharmin Mossavar-Rahmani, the chief investment officer for Goldman Sachs Wealth Management, where the financial veteran said that she does not view crypto as an investment asset class and has not seen interest from clients. <\/p>\n

\u201cThe nice thing is, about an institution of our size, there are differing views,\u201d McDermott told Fortune<\/em>. He said that Goldman Sachs is more active in crypto from an institutional perspective, including trading cash-settled crypto derivatives on behalf of clients, along with its involvement in the ETF markets. \u201cWe\u2019ve continued to see, certainly this year, an uptick and a broadening in the product suite that clients would like to see available,\u201d he said.<\/p>\n

Tokenization remains a central part of the bank\u2019s plans. Goldman Sachs has dabbled in the field, including working on a bond issuance with the European Investment Bank in 2022 and tokenizing a sovereign green bond for the Hong Kong Monetary Authority in 2023, as well as launching the Goldman Sachs Digital Asset Platform in 2023 to facilitate the tokenization of assets. <\/p>\n

The biggest tokenization launch this year has been BlackRock\u2019s treasury fund BUIDL, which reached $500 million on Monday and operates on Ethereum, a public blockchain. McDermott said that BlackRock, along with similar funds from Franklin Templeton, targets a retail customer base, while Goldman Sachs is focused more on institutions and would work exclusively with private blockchains due to regulatory restrictions. He said that the bank\u2019s aim is to create actual marketplaces for tokenized assets, as well as delivering improvements when it comes to speed and the types of assets that can be used as collateral.<\/p>\n

McDermott declined to provide specifics on the three tokenization projects set to launch this year but said that one is focused on the fund complex in the U.S., and another on debt issuance in Europe.<\/p>\n

With the U.S. presidential election and a potential change in the government\u2019s regulatory approach toward crypto just a few months away, McDermott said that the bank\u2019s opportunities in the space could expand, including being able to hold spot crypto assets. \u201cThere could be other things that we as a firm would naturally be interested, subject to approval, to do, like execution and maybe sub-custody,\u201d he told Fortune<\/em>. <\/p>\n<\/div>\n

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[ad_1] As its peers in traditional finance push deeper into crypto\u2014including BlackRock\u2019s Bitcoin ETF and Fidelity\u2019s trading platform\u2014Goldman Sachs is preparing to make a move<\/p>\n","protected":false},"author":1,"featured_media":241687,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[149],"tags":[],"_links":{"self":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/241686"}],"collection":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/comments?post=241686"}],"version-history":[{"count":0,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/241686\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media\/241687"}],"wp:attachment":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media?parent=241686"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/categories?post=241686"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/tags?post=241686"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}