Cryptocurrencies

Goldman Sachs Takes Steps Into Crypto: Tokenization Products Planned for Late 2024


Goldman Sachs, one of the world’s leading investment banks, has shared its plans to launch three new tokenization products by the end of 2024. Matthew McDermott, the bank’s head of digital assets, hinted in an interview on July 10 that the tokenization products will be available in both Europe and the United States.

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Entering the crypto industry

Goldman Sachs appears to be following the lead of its competitors by entering the crypto space. McDermott stated that the bank has seen a surge in client interest in digital assets. In response, Goldman Sachs plans to expand its offering to include products where real-world assets, such as real estate and money market funds, will be issued on private (and likely permissioned) blockchains.

Focus on institutional investors

McDermott stressed that the projects will primarily target the bank’s core clients, including those in Europe. One project is reportedly targeting the European debt market, while the other will focus on the U.S. fund market. The bank also plans to set up marketplaces for tokenised assetswith the emphasis on financial institutions rather than individual investors.

Benefits of tokenised assets

According to McDermott, the marketplace for real-world assets will differentiate itself through the speed and breadth of assets that can be used as collateral for securities. He is optimistic about the success of the projects and emphasizes the importance of designing products that are attractive to venture capital.

Renewed interest in crypto

The renewed interest in crypto is being attributed to the increased number of exchange-traded funds (ETFs) for digital assets like Bitcoin and Ether. More than a dozen Bitcoin ETFs have been listed this year alone. Regulators are also reportedly reviewing registrations for new spot Ether ETFs, which market analysts expect to begin trading this month.

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