tl;dr
Goldman Sachs is launching a new company focused on digital assets and blockchain technology, aiming to enable large financial institutions to create, trade, and settle financial instruments. The investment bank is in talks with potential partners to expand the platform's capabilities. Tradeweb Mark...
Goldman Sachs is venturing further into blockchain and crypto by launching a new company focused on digital assets and blockchain technology. This initiative aims to enable large financial institutions to create, trade, and settle financial instruments using blockchain technology. The investment bank is currently in discussions with potential partners to expand the platform's capabilities and explore commercial applications.
According to Bloomberg reports, this spin-off is still in the early stages but is expected to be finalized within the next 12 to 18 months, subject to regulatory approval. Tradeweb Markets Inc., an electronic trading platform, has announced its partnership with Goldman Sachs as the first strategic partner for the digital assets platform. This collaboration will potentially help the firm develop additional use cases that leverage blockchain for financial transactions.
"It's in the best interest of the market to have something that is industry-owned," the platform's Global Head of Digital Assets told Bloomberg. This move by Goldman reflects a broader industry trend, with major financial institutions and governments adopting blockchain technology to enhance the efficiency of traditional asset trading and settlement processes. The platform's goal is to enable faster and more cost-effective transactions for assets like cash and bonds. Additionally, the firm is exploring ways to support secondary market transactions for private digital asset companies to address the growing demand from its clients and expand its business features.
Goldman Sachs has remained bullish on Bitcoin throughout the year, despite price fluctuations. Despite outflows from Bitcoin ETFs in Q3, the firm noted increasing activity from institutional investors. Bitcoin's recent surge to nearly $93,000 underscores Goldman's confidence in the token's long-term potential. Earlier this year, Goldman Sachs and DRW Capital revealed a combined $600 million investment in spot Bitcoin and Ethereum ETFs. The firm holds $410 million in Bitcoin ETFs, with substantial stakes in BlackRock's IBIT and Fidelity's FBTC funds. In July, Goldman Sachs also announced plans to roll out three tokenization projects in 2024, aiming to serve institutional clients and offer new opportunities for asset diversification.