In order to promote the application of private blockchain technology in the financial services industry, Wall Street investment bank Goldman Sachs announced on Monday its plan to spin off its wholly-owned technology platform GS DAP® from its digital asset business, subject to regulatory approval.
At the same time, Goldman Sachs also announced it will collaborate with Tradeweb to integrate its trading and liquidity capabilities in the fixed income space into GS DAP®, bringing new business use cases to the platform.
Goldman Sachs stated in a press release that the goal of this spin-off is to build GS DAP® into a decentralized technology solution shared by the industry, "establishing a company independent of Goldman Sachs and its digital asset business will help ensure the platform is equipped with solutions adaptable to future demands, providing a foundation for the long-term development of digital financial services."
"We view permissioned distributed technology as the next structural transformation in financial markets, and have already demonstrated the expected benefits that this technology is believed to bring," said Mathew McDermott, Global Head of Digital Assets at Goldman Sachs. "Providing decentralized technology solutions to a broad spectrum of market participants has the potential to redefine market connectivity, the composability of infrastructure, and offer new business opportunities for buyers and sellers."
Goldman Sachs' existing digital asset platform operates on a private chain, requiring bank permission to send transactions, which is different from public blockchains like Ethereum and Solana that do not require such permission. Some Wall Street institutions also use private chains in their own digital asset platforms, such as JPMorgan.
Some institutions are also adopting public chains to run financial businesses; for example, asset management company BlackRock has launched its tokenized currency fund on multiple public blockchains.
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