Goldman Sachs is set to launch three token projects targeting institutional clients, with a focus on permissioned networks and private blockchains due to regulatory concerns.
Goldman Sachs is preparing to launch three major token projects by the end of the year as part of its strategic expansion into digital assets.
While its peers, such as BlackRock and Franklin Templeton, have already entered the token world, Goldman Sachs is primarily focused on using permissioned networks due to regulatory concerns.
Matthew McDermott, the bank’s global head of digital assets, announced the initiatives, emphasizing their focus on institutional clients.
“The nice thing is that for an organization our size, there are different views[on cryptocurrencies],” McDermott told Fortune. Firstly To report news.
Goldman Sachs is increasingly involved in the crypto space from an institutional perspective. This includes trading cash-settled crypto derivatives for clients and participating in exchange-traded fund markets. “We’ve continued to see, certainly this year, an uptick and expansion in the range of products that clients want to see available,” he said.
Project details
One token project will target the US funds sector, aiming to simplify asset management through blockchain-based tokenization. Another will focus on European debt markets, potentially revolutionizing debt issuance.
The third project remains unannounced but is expected to contribute to Goldman Sachs’ efforts to diversify and innovate in the digital assets space.
Unlike BlackRock and Franklin Templeton, which favor public blockchain solutions, Goldman Sachs is planning to use private blockchains due to regulatory considerations. This shows that the 150-year-old bank is cautious but proactive in dealing with the evolving regulatory landscape.
The move comes amid a broader recovery in the cryptocurrency market, thanks to recent developments in Bitcoin ETFs and growing institutional interest.
