- Goldman Sachs to launch tokenized Treasuries and euro bonds as part of 2025 roadmap
- U.S. policy shifts now allow banks to offer crypto custody and blockchain settlements
- Goldman considers spinning off its Digital Asset Platform to boost tokenization access
Goldman Sachs plans to expand its cryptocurrency offerings to include crypto lending and asset tokenization. Mathew McDermott, the Global Head of Crypto at Goldman Sachs, announced the plans at TOKEN2049 in Dubai, noting increased client interest in crypto-related services.
McDermott stated the investment banking giant aims to extend its current cryptocurrency trading platform by adding lending services and extensive tokenization operations. These initiatives mark Goldman Sachs’ extensive integration into digital assets, contingent upon regulatory approval, notably from the U.S. Securities and Exchange Commission (SEC).
Goldman Sachs began its crypto operations in 2021 by opening a crypto derivatives trading unit. The company previously offered cash-settled Bitcoin and Ethereum options with cash settlement and futures contracts traded on the Chicago Mercantile Exchange (CME). Due to institutional and retail interest in blockchain and cryptocurrencies, the company plans to expand into lending and tokenization services.
Traditional Finance’s Shift Towards Crypto
The decision by Goldman Sachs highlights a financial institution’s trend toward active crypto adoption. McDermott explained that increasing client demand for digital assets for cryptocurrency interaction has pushed Goldman Sachs to focus more on digital asset integration.
The transition follows predictions made by Eric Trump, who serves as executive vice president of the Trump Organization. At the TOKEN2049 event, Eric suggested that traditional banking and financial systems face potential collapse if they fail to embrace cryptocurrencies. Eric further described traditional payment mechanisms like SWIFT as outdated and inefficient.
Goldman Sachs’ expansion echoes similar actions by other traditional financial institutions. Morgan Stanley plans to integrate crypto trading capabilities into its E*TRADE platform by 2026 to facilitate transactions involving major cryptocurrencies like Bitcoin and Ethereum.
U.S. Policy Shifts Enable Institutional Crypto Growth
Furthermore, traditional financial institutions have received support from recent US policy changes to participate in crypto activities. National banks now have authority under Interpretive Letter 1183 issued by the Office of the Comptroller of the Currency (OCC) to launch crypto custody services, stablecoin operations, and distributed ledger settlements. Additionally, the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and OCC withdrew their previous guidance that limited crypto operations among banking institutions.
The new regulations have made U.S. standards more compatible with international standards, which fuels business growth opportunities for Goldman Sachs and similar companies when expanding their crypto offerings. In addition, Goldman Sachs is considering spinning off its Digital Asset Platform (GS DAP) into a separate entity. The move would enhance the platform’s efficiency and liquidity, as several institutions can use the same blockchain system.
Despite these advancements, Goldman Sachs prioritizes permissioned blockchains to meet compliance obligations effectively. Ongoing challenges, such as regulatory capital requirements tied to on-chain assets and limited liquidity in tokenized bonds, suggest that secondary markets may take time to mature.
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