Goldman Sachs is preparing to launch a new company focused on its cryptocurrency platform. The initiative aims to enable large financial institutions to create, trade and settle financial instruments using blockchain technology.
The investment bank is currently in talks with several partners to expand the platform's capabilities and explore commercial applications.
Goldman Sachs seeks to expand its blockchain and crypto footprint
According to reports from Bloomberg, the spin-off is still in the early stages but is expected to be finalized in the next 12 to 18 months. This, however, is subject to regulatory approval.
Additionally, Tradeweb Markets Inc., an electronic trading platform, announced its partnership with Goldman Sachs, becoming the first strategic partner for the cryptocurrency platform.
Thus, this collaboration could help the company develop new use cases that leverage blockchain for financial transactions.
It’s in the market’s interest to have something that is owned by the industry, the platform’s global head of digital assets told Bloomberg.
Goldman's move reflects a broader trend in the industry, where major financial institutions and governments are embracing blockchain to increase the efficiency of traditional asset trading and settlement processes.
The platform's goal is to enable faster, lower-cost transactions for assets such as cash and securities.
In a separate initiative, the firm is also exploring ways to support secondary market transactions for private digital asset companies. Goldman Sachs wants to meet growing demand from its clients and expand its trading capabilities.
Bullish on Bitcoin
Goldman has maintained a bullish stance on Bitcoin throughout the year, even as its price has dropped to $60,000.
Despite outflows from Bitcoin ETFs in the third quarter, the firm has seen increased activity from institutional investors. The cryptocurrency’s recent surge to nearly $93,000 reinforces Goldman’s confidence in the asset’s long-term potential.
Earlier this year, Goldman Sachs and DRW Capital revealed a joint $600 million investment in Bitcoin and Ethereum ETFs in cash. The bank has $410 million, with substantial holdings in BlackRock's IBIT and Fidelity's FBTC funds.
In July, Goldman Sachs announced plans to launch three tokenization projects in 2024. These initiatives aim to serve institutional clients and offer new opportunities for asset diversification.
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