Goldman Sachs plans building a crypto exchange

Goldman Sachs is preparing to spin out its cryptocurrency platform to establish a new business dedicated to developing and trading financial instruments on blockchain networks. 18.

American-based tier 1 investment bank is partnering to expand the platform’s functionality and create new products, Goldman’s global head of digital assets, Mathew McDermott, stated to Bloomberg.

One of the new entity’s strategic partners will be the electronic trading platform Tradeweb Markets. According to McDermott, the spinout should be finished within the next 12 to 18 months in the aftermath of regulatory approvals

The plans are still in the early phases. “Having something owned by the industry is best for the market,” McDermott told Bloomberg.

McDermott stated in July that Goldman Sachs is getting ready to introduce three new tokenization products in the US and Europe later this year because of “a major uptick in interest from clients” in cryptocurrency. McDermott allegedly stated that Goldman Sachs would concentrate on the “fund complex” in the US and European debt markets and build marketplaces for tokenized real-world assets (RWAs).

The investment bank will only use permissioned blockchains and its new products are aimed at financial institutions rather than individual investors. He claimed that by increasing the variety of assets pledged as collateral and by executing transactions more quickly, the real-world assets marketplace would set itself apart. McDermott highlighted the “renewed momentum in the crypto market” was triggered by the continued growth of digital asset exchange-traded funds (ETFs).

If Goldman Sachs’ asset allocation remains unchanged, it currently owns more than $1 billion in Bitcoin ETFs. This figure may be significantly higher if the group keeps moving in the same direction.