Goldman Sachs is separating its crypto platform to establish a new company, focusing on developing digital asset trading on the Blockchain, expected to be completed within the next 12-18 months.
Goldman Sachs, one of the world's leading investment banks, is planning an ambitious move 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 crypto platform to establish an independent company. This move is expected to help the bank focus on more effectively developing and trading financial instruments on the Blockchain platform.
The separation process is expected to take between 12 and 18 months, depending on regulatory approvals. Currently, the plan is still in the initial stage, but Goldman Sachs has already begun negotiations with potential partners, including Tradeweb Markets, a leading electronic trading platform, to expand capabilities and develop new products for the upcoming crypto company.
Mathew McDermott, Global Head of Digital Assets at Goldman Sachs, told Bloomberg that owning a platform within the industry will bring maximum benefits to the market.
Focusing on the booming RWA market
Goldman Sachs has shown increasing interest in the crypto market in recent times. In July, the bank revealed plans to launch three new crypto products in the US and Europe this year, focusing on the RWA (Real-World Assets) market - tokenized real assets - with a focus on US fund complexes and the European debt market.
Goldman Sachs aims to serve financial institutions rather than individual investors. The bank also commits to using only permissioned Blockchain to ensure compliance and security.
The explosive growth of crypto-related Exchange Traded Funds (ETFs) is seen as the main driver behind the increased interest in the crypto market. Since the beginning of 2024, nearly 12 Bitcoin ETFs have been listed in the US after receiving regulatory approval. By July, some spot Ethereum ETFs have also been allowed to list. Goldman Sachs is known to be one of the largest investors in Bitcoin ETFs this year.
According to McDermott, the RWA market built by Goldman Sachs will have advantages in terms of processing speed and the ability to expand the types of assets that can be used as collateral.
Demand for tokenized RWAs, providing low-risk yields from US Treasuries and other money market instruments, is growing rapidly. Data from RWA.xyz shows that the Total Value Locked of tokenized US Treasury debt has reached around $2.4 billion as of November 14.
