Goldman Sachs is separating its cryptocurrency platform to establish a new company, focusing on the development of digital asset trading on the blockchain, expected to be completed in the next 12-18 months.
Goldman Sachs, one of the world's leading investment banks, is planning bold moves to strengthen its position in the digital asset space. According to information from Bloomberg on November 18, Goldman Sachs is in the process of separating its current cryptocurrency platform to establish an independent company. This move is expected to help the bank focus on developing and trading financial instruments on the blockchain platform more effectively.
It is expected that this separation process will take place over a period of 12 to 18 months, depending on the approval of regulatory authorities. Currently, the plan is still in its early stages, but Goldman Sachs has begun negotiations with potential partners, including Tradeweb Markets, a leading electronic trading platform, to expand capabilities and develop new products for the upcoming cryptocurrency company.
Mr. Mathew McDermott, Global Head of Digital Assets at Goldman Sachs, shared with Bloomberg that owning an industry-owned platform will provide maximum benefits to the market.
Focusing on the booming RWA market
Goldman Sachs has shown increasing interest in the cryptocurrency market recently. In July, the bank revealed plans to launch three new cryptocurrency products in the US and Europe this year, focusing on the RWA market – tokenized real assets – with an emphasis on fund complexes in the US and the European debt market.
Goldman Sachs aims to serve financial institutions rather than individual investors. At the same time, the bank is committed to using only licensed blockchain to ensure compliance and safety.
The explosive growth of exchange-traded funds (ETFs) related to digital assets is seen as the main driver of interest in the cryptocurrency market. Since the beginning of 2024, nearly 12 Bitcoin ETFs have been listed in the US after receiving approval from regulatory authorities. By July, some spot Ethereum ETFs were also permitted to be listed. Goldman Sachs is known to be one of the largest investors in Bitcoin ETF funds this year.
According to Mr. McDermott, the RWA market built by Goldman Sachs will have advantages in processing speed and the ability to scale the types of assets that can be used as collateral.
Source: RWA.xyz
The demand for tokenized RWAs, which provide low-risk yields from US Treasury bonds and other money market instruments, is increasing sharply. Data from RWA.xyz shows that the total value locked (TVL) of tokenized US Treasury bond debt has reached approximately $2.4 billion as of November 14.