Goldman Sachs is getting ready to introduce three innovative tokenization products later this year in the United States and Europe. This decision stems from a significant surge in interest from clients towards cryptocurrencies. The information comes from an interview with Mathew McDermott, the global head of digital assets at the investment bank, as reported by Fortune on July 10.
McDermott refrained from revealing specific details but mentioned that Goldman Sachs aims to establish marketplaces for tokenized real-world assets (RWAs), focusing on the 'fund complex' within the United States and European debt markets. The investment bank plans to cater to financial institutions rather than retail investors through its new products, exclusively relying on permissioned blockchains. McDermott highlighted the RWA marketplace's distinguishing features such as rapid execution and the broadening spectrum of assets eligible for use as collateral.
The resurgence in crypto activity was attributed to the expanding availability of exchange-traded funds (ETFs) for digital assets. Since receiving approval from US regulators in January, nearly a dozen Bitcoin ETFs have been listed. Regulators are currently evaluating registration filings for multiple spot Ether ETFs, expected to commence trading as early as this month.
Funds specializing in RWAs are gaining prominence in the US, particularly those dealing with tokenized money market instruments. The BlackRock USD Institutional Digital Liquidity Fund (BUIDL) recently surpassed $500 million in assets under management, while Franklin Templeton's OnChain US Government Money Fund (FOBXX) follows closely with around $400 million in assets under management.
According to Fortune, the prospects for Goldman Sachs in the crypto sphere could expand further in the upcoming months if the US regulatory landscape softens post the presidential election. McDermott remarked that the firm might explore additional opportunities subject to approval, such as execution and sub-custody.
Number of real-world asset transactions onchain since December 2023. Source: Dune Analytics
