Goldman Sachs plans to launch three new tokenization products in the United States and Europe later this year. According to Fortune, this decision is based on the huge increase in customer interest in cryptocurrencies. Mathew McDermott, Goldman Sachs' global head of digital assets, said the bank plans to create markets for tokenized real-world assets (RWA) and focus on the "fund complex" in the United States and European debt markets.

McDermott said they plan to target financial institutions rather than retail investors with the new products and use only permissioned blockchains. He stated that the RWA market will differentiate itself by expanding the speed of execution and the types of assets that can be used as collateral.

McDermott attributed the “resurgent momentum in cryptocurrencies” to the continued proliferation of exchange-traded funds (ETFs) for digital assets. Nearly a dozen Bitcoin (BTC) ETFs have been listed since January, when US regulators gave final approval to investment vehicles. Regulators are now reviewing registration filings for several spot Ether (ETH) ETFs that analysts expect to begin trading later this month.

Funds dealing with RWAs are gaining momentum in the US. This is especially true for funds that trade tokenized money market instruments, such as the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). BUIDL reached $500 million in assets under management earlier this week. Franklin Templeton's OnChain U.S. Government Monetary Fund (FOBXX) is a close second, with nearly $400 million in assets under management.

The investment bank's opportunities in cryptocurrencies could expand further in the coming months if the upcoming presidential election softens U.S. regulatory stance on the industry. “If approval is granted, there may be other things our firm would naturally be interested in, such as implementation and perhaps downstream client services,” McDermott said. We are waiting your comments!#blockchain#GoldmanSachs #crypto