Goldman Sachs Preparing To Launch Its Digital Assets Platform: Bloomberg
Goldman Sachs is preparing to launch a new company focused on its digital asset platform, according to a new report from Bloomberg. The company is in talks with potential partners and plans to spin off its digital asset platform into a new company for large financial firms to create, trade and settle financial instruments through blockchain technology.
Spin-off in 12-18 months
Mathew McDermott, global head of digital assets at Goldman Sachs, noted that while plans for the new company are still in the early stages, the long-term goal is to execute the spin-off within the next 12 to 18 months, subject to regulatory approval. approve.
“It’s in the best interest of the market to have what the industry has,” he said. Electronic trading platform Tradeweb Markets Inc. is its first strategic partner and will work with Goldman Sachs to bring new business use cases to the digital asset platform. This reflects the growing trend of large institutions integrating blockchain technology into traditional financial systems.
Goldman Sachs’ move reflects a broader industry trend, in which major financial institutions and governments are adopting blockchain technology to make traditional asset trading and settlement processes more efficient.
In another move, Goldman Sachs wants to support secondary trading of private digital asset firms for its clients. This could make it easier for family offices and other clients to seek liquidity, while also allowing buyers to take advantage of private market discounts. The company also noted that it is preparing to resume its Bitcoin-backed lending activities.
“If you want to build a scalable market, you want to have the right strategic players embracing the technology,” McDermott said. “You need a number that’s flexible enough to operate driven by business use cases.”
Goldman Sachs bullish on Bitcoin
Goldman Sachs has maintained a bullish stance on Bitcoin throughout the year. In a filing with the SEC on November 14, Goldman Sachs reported that it held eight Bitcoin ETFs worth approximately $718 million. Since the second quarter, its Bitcoin ETF portfolio has increased by $300 million, a 71% increase. It also plans to launch three tokenization projects by the end of this year.
