Goldman Sachs is set to expand its cryptocurrency services, with a particular focus on tokenizing assets. The global investment bank has plans to launch three tokenization projects by the end of the year, as it continues to see growing interest from clients. Goldman Sachs aims to innovate investment methods and broaden its range of cryptocurrency products.
The move by Goldman Sachs comes as other financial giants like Blackrock and Fidelity also increase their involvement in the cryptocurrency market. Mathew McDermott, the head of digital assets at Goldman Sachs, revealed to Fortune that the bank intends to enhance its crypto services and specifically concentrate on the tokenization of assets such as money market funds and real estate. The bank is set to launch three tokenization projects by the end of the year, including one in the United States.
Goldman Sachs recently organized a digital assets summit in London, which showcased strong interest from clients. McDermott emphasized that the bank is not pursuing these initiatives just for the sake of it, but rather based on feedback from clients who believe that this innovation has the potential to significantly change investment methods. McDermott stated:
"The feedback we have received is that this is something that will actually change how they can invest."
Although there are differing internal views on the viability of cryptocurrencies within the bank, with CIO Sharmin Mossavar-Rahmani remaining skeptical, McDermott emphasized that Goldman Sachs is focused on serving institutional clients. This includes trading cryptocurrency derivatives and participating in spot bitcoin exchange-traded funds (ETFs).
McDermott added:
"This year, we have seen an increase in both demand and the breadth of the product suite that clients would like to have available."
Tokenization is a central aspect of Goldman Sachs' strategy. The bank has previously undertaken significant tokenization projects and aims to develop marketplaces for tokenized assets. McDermott believes that regulatory changes following the U.S. presidential election could further expand the bank's activities in the cryptocurrency space.
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