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Goldman Sachs plans to initiate tokenization projects by the conclusion of 2024, focusing on money market funds and real estate, as reported on July 10.
According to Fortune, Goldman Sachs aims to utilize public or private blockchains to tokenize real-world assets (RWAs), thereby improving investment prospects. The firm’s three initiatives with significant clients include its inaugural project in the United States.
RWAs as New Investment Opportunities
The bank has previously engaged in tokenization efforts, such as a bond issuance with the European Investment Bank and a sovereign green bond for the Hong Kong Monetary Authority. These projects are part of Goldman’s extensive strategy to provide digital asset solutions.
GOLDMAN SACHS TO LAUNCH THREE TOKENIZATION PROJECTS BY END OF YEAR, SAYS DIGITAL ASSETS CHIEF
As its counterparts in traditional finance delve further into crypto—including BlackRock’s Bitcoin ETF and Fidelity’s trading platform—Goldman Sachs is preparing to take its own steps. This…
— *Walter Bloomberg (@DeItaone) July 10, 2024
Matthew McDermott, global head of digital assets at Goldman Sachs, highlighted the necessity of developing products that investors seek. The bank recently conducted a digital assets summit in London, which attracted significant client interest in tokenized assets.
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“There’s no point doing it just for the sake of it,” McDermott stated. “The clear feedback is that this is something that will genuinely alter the way they can invest.”
Tokenization Projects in the US and Europe
McDermott also mentioned that the introduction of exchange-traded funds (ETFs) has created a “renewed momentum in crypto,” although this enthusiasm is not uniformly shared within Goldman Sachs.
“The advantage is that, within an institution of our scale, there are varying perspectives,” McDermott remarked. “We’ve certainly observed this year an increase and a diversification in the product offerings that clients wish to see available.”
McDermott refrained from disclosing details about the three tokenization projects set to launch this year but indicated that one initiative concentrates on the fund complex in the U.S., while another is aimed at debt issuance in Europe.
He noted that the bank’s prospects in this area could broaden, potentially including the holding of spot crypto assets.
“There could be other areas that we, as a firm, would naturally be inclined to explore, subject to approval, such as execution and possibly sub-custody,” he stated.
The post Goldman Sachs to Introduce Three Tokenization Initiatives in 2024 appeared first on Cryptonews.
