Goldman Sachs Tokenization Projects Expected to Launch in 2024

Key Points:

• Goldman Sachs tokenization projects are expected to launch later this year with the goal of expanding the bank’s crypto services.
• The bank held a digital assets summit in London, indicating strong client interest, and aims to create marketplaces for tokenized assets to improve investment options.

According to Fortune, Goldman Sachs is poised to make a significant move in the crypto sector as traditional finance giants like BlackRock and Fidelity deepen their involvement.

Goldman Sachs Tokenization Projects to Be Launched by Year-End

The bank, which has been around for 150 years, is seeing increased interest from clients in digital assets, according to Mathew McDermott, the global head of digital assets at Goldman Sachs.

McDermott revealed plans to expand Goldman Sachs’ crypto offerings, focusing on tokenization. This involves issuing real-world assets such as money market funds and real estate on public or private blockchains. By the end of the year, Goldman Sachs aims to launch three tokenization projects with major clients, including its first in the U.S.

While competitors like BlackRock and Franklin Templeton explore tokenization, McDermott emphasizes the importance of creating investor-friendly Goldman Sachs tokenization projects. To this end, Goldman Sachs recently held a digital assets summit in London, attracting over 500 clients. McDermott stated, “The definite feedback is, this is something that actually will change the nature of how they can invest.”

Future Regulatory Changes Could Expand Goldman Sachs’ Crypto Opportunities

This year’s most notable tokenization launch has been BlackRock’s treasury fund BUIDL, which reached $500 million and operates on the Ethereum blockchain. While BlackRock and Franklin Templeton target retail customers, Goldman Sachs is focusing on institutions and plans to use private blockchains due to regulatory constraints. The bank aims to develop marketplaces for tokenized assets and enhance transaction speed and collateral types.

Although McDermott did not disclose details about the upcoming Goldman Sachs tokenization projects, he mentioned they include a U.S. fund complex and European debt issuance. He also noted potential expansion in the crypto space depending on the outcome of the upcoming U.S. presidential election and possible regulatory changes.