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Goldman Sachs eyes tokenization projects for institutional clients by year-end

Goldman Sachs eyes tokenization projects for institutional clients by year-end
© Copyright Image: CryptoSlate

Goldman Sachs is preparing to launch three tokenization projects by year-end for major institutional clients, the firms global head of digital assets, Mathew McDermott, told Fortune Crypto in a July 10 interview.

McDermott explained that tokenization, which is the process of converting real-world assets (RWA) into digital tokens, presents a critical opportunity for the bank due to rising client demand for such products.

He stated:

Theres no point doing it just for the sake of it. The definite feedback is, this is something that actually will change the nature of how they can invest.

Speaking on the projects, he stated that they would be focused on marketplaces for tokenized assets, speed up transactions, and diversify collateral assets. Meanwhile, he also revealed that one of the projects will target the US fund complex, while another will focus on Europes debt issuance.

Goldman Sachs move reflects the growing institutional interest in tokenizing real-world assets. The trend has seen significant adoption, exemplified by BlackRocks BUIDL fund, which surpassed $500 million in assets under management in less than six months despite broader market challenges.

Crypto custody hints

McDermott hinted that the firms involvement in the crypto sector might expand to include custodial services if the governments regulatory approach changes.

He said:

There could be other things that we as a firm would naturally be interested, subject to approval, to do, like execution and maybe sub-custody.

As the US presidential election approaches, crypto has become a key political issue. The leading candidatesPresident Joe Biden and former President Donald Trumphave shown significant interest in the industry, although their views differ.

While Biden has begun to soften his administrations previous stance toward the sector, Trump has publicly voiced strong support for the industry, promising to create an environment fostering growth.

Due to this, many crypto stakeholders have publicly backed Trumps presidency. They believe he would implement regulatory changes that would allow the industry to thrive and protect it from strict financial regulators like the US Securities and Exchange Commission (SEC).

The post Goldman Sachs eyes tokenization projects for institutional clients by year-end appeared first on CryptoSlate.

Read more: https://cryptoslate.com/goldman-sachs-eyes-tokenization-projects-for-institutional-clients-by-year-end/

Text source: CryptoSlate

Disclaimer: Financial information and news are not financial advice, read the disclaimer.
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