Goldman Sachs Bets Big on Crypto with New Blockchain Spin-Off

Goldman Sachs is preparing to spin off its cryptocurrency platform into a separate entity focused on blockchain-based financial products, Bloomberg reported.

This move will expand the platform’s offerings, with the bank exploring partnerships with firms like Tradeweb Markets to broaden its reach. The spinout is expected to be completed in 12 to 18 months, pending regulatory approvals.

Mathew McDermott, head of Goldman Sachs’ Digital Assets division, stated that the spinout is designed to benefit the broader market by keeping the platform industry-owned. This initiative is part of the bank’s broader plan to enhance its crypto offerings, including launching tokenization products for U.S. and European debt markets.

These products will target financial institutions and rely on permissioned blockchains to ensure security and faster execution, with the ability to use various assets as collateral.

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Goldman Sachs’ increased focus on tokenized assets is driven by growing demand for low-risk digital products. The firm has been one of the largest buyers of Bitcoin ETFs and is now expanding into tokenized U.S. Treasury debt, which has already accumulated over $2.4 billion in value. The bank’s push into tokenized real-world assets is aimed at institutional investors, with a focus on security and efficiency.

The bank’s strategic move aligns with the growing trend of financial institutions exploring the digitization of traditional assets. By focusing on blockchain technology, Goldman Sachs is positioning itself to lead in a rapidly developing market, anticipating wider adoption of digital assets in the future.

Kostadin Dimitrov