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Goldman Sachs to launch three tokenization projects by end of year, says digital assets chief: ‘A renewed momentum in crypto’

Goldman Sachs is gearing up to enter the world of cryptocurrency as interest from clients continues to grow. The banking giant, with a history spanning 150 years, is set to expand its crypto offerings, including ventures into tokenization. This involves issuing “real world assets” like money market funds and real estate holdings on public or private blockchains. By the end of the year, Goldman Sachs plans to launch three tokenization projects, with the first in the U.S.

While some of its peers are also exploring tokenization, Goldman Sachs believes the key to success lies in creating products that investors truly want. To gather feedback, the bank recently held a digital assets summit in London, attended by over 500 clients. This move comes after a period of uncertainty in the crypto market, which saw a revival this year with the launch of Bitcoin ETFs. Goldman Sachs played a significant role in these offerings, serving as an authorized participant.

However, not everyone at the bank shares the same enthusiasm for crypto. While Mathew McDermott, the global head of digital assets at Goldman Sachs, sees renewed momentum in the crypto sector, others like Sharmin Mossavar-Rahmani, the chief investment officer for Goldman Sachs Wealth Management, remain skeptical. Despite differing views within the institution, Goldman Sachs remains active in crypto from an institutional perspective, engaging in activities like trading cash-settled crypto derivatives for clients.

Tokenization remains a focal point for Goldman Sachs, with plans to launch new projects focused on the fund complex in the U.S. and debt issuance in Europe. The bank aims to create marketplaces for tokenized assets, offering improvements in speed and collateral options. While BlackRock has made waves with its treasury fund BUIDL, operating on the Ethereum blockchain, Goldman Sachs is targeting institutional clients and plans to work exclusively with private blockchains.

Looking ahead, Goldman Sachs sees potential opportunities in the evolving regulatory landscape, particularly with the U.S. presidential election on the horizon. The bank is exploring options like holding spot crypto assets and expanding into execution and sub-custody services, pending regulatory approval. As the crypto market continues to evolve, Goldman Sachs is positioning itself to be a key player in this rapidly changing industry.

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