Goldman Sachs is set to launch a new blockchain-based cryptocurrency platform, aiming to enhance its fintech capabilities.
Goldman Sachs' Plans
Bloomberg reported on November 18 that Goldman Sachs plans to carve out its cryptocurrency platform into a new entity focused on creating and trading financial instruments on blockchain networks. The move aims to boost the company's blockchain capabilities through strategic partnerships, with regulatory approval expected within 12 to 18 months.
Partnerships and Products
Goldman's Global Head of Digital Assets, Matthew McDermott, indicated that they are exploring potential partners for this initiative. Tradeweb Markets, known for its electronic trading services, is likely to be a key partner for the new venture. Additionally, Goldman Sachs is set to launch three new tokenization products in the US and Europe by year-end, responding to increased client interest in cryptocurrencies.
Cryptocurrency Market in 2024
The surge of interest in cryptocurrencies is partly driven by the growth of exchange-traded funds (ETFs) for digital assets. Since January, nearly a dozen Bitcoin ETFs have been approved by US regulators, with spot Ether ETFs also sanctioned in July. Goldman Sachs is expected to continue actively purchasing BTC ETFs in 2024, given the rising demand for tokenized real-world assets offering low-risk returns via T-Bills and other money market solutions.
Cryptocurrency popularity continues to rise, and Goldman Sachs is actively incorporating blockchain technologies to enhance its capabilities. The company aims to offer innovative solutions to its clients by leveraging established technologies and new partnerships.
