Goldman Sachs Digital Asset Platform Plans New Split in Next 12 Months

Key Points:

• The Goldman Sachs digital assets platform is planned to be spun off into a separate company, with a target timeline of 12 to 18 months.
• The bank has cooperated with Tradeweb Markets to explore new commercial use cases for the platform.

According to Bloomberg, Goldman Sachs is in talks with potential partners about setting up its digital assets platform as a separate entity to develop, trade, and settle blockchain-based financial instruments for large financial institutions.

Read more: Goldman Sachs Increases Bitcoin ETF Holdings to $710M 

Goldman Sachs Digital Assets Platform Is Planning to Spin Off

These plans are early, and the aim is to get the spin-off completed in a period of 12-18 months, pending all regulatory approvals, said Mathew McDermott, global head of Digital Assets.

Since its launch, Goldman Sachs digital assets business has been at the forefront of blockchain adoption and crypto-linked trading products. As part of the spin-out initiative, the bank has secured its first strategic partner, the electronic trading platform Tradeweb Markets. Tradeweb will collaborate with Goldman to explore new commercial use cases for the platform.

Goldman’s move follows the increasing efforts of financial firms and governments to use blockchain technology in an attempt to make the trading and settlement processes of traditional assets, such as cash and bonds, more efficient. The wider digital assets market has witnessed fresh optimism, with investors expecting heightened industry momentum after the recent U.S. presidential win by Donald Trump.

Goldman Muses Over Secondary Transactions and Bitcoin Lending

Separate from the spin-out, Goldman is considering the facilitation of secondary transactions in private digital-asset companies for its clients, thus offering family offices and other investors more avenues of getting into and out of investments. The bank also seeks to restart its Bitcoin-backed lending.

Since its launch in 2022, the Goldman Sachs digital asset platform has already been used for such transactions as bond issuance for the European Investment Bank. The technology platform is to become part of a new entity, while Goldman will retain its digital assets team and keep on expanding activities in the sector.