Goldman Sachs, a 150-year-old financial institution, is reportedly planning to launch three tokenization projects by the end of the year, according to a Fortune report.
Goldman Sachs, a 150-year-old financial institution, is reportedly planning to launch three tokenization projects by the end of the year, according to a Fortune report. Details about these projects remain limited, but sources indicate that one will target the U.S. fund sector while another will focus on European debt markets. Additionally, the firm plans to create marketplaces for tokenized assets.
Unlike some of its competitors, Goldman Sachs is focusing on using permissioned networks rather than fully decentralized blockchains like Ethereum, due to regulatory concerns. Mathew McDermott, Goldman's Global Head of Digital Assets, noted that the firm has been working with permissioned blockchain networks since 2021. Goldman Sachs has worked with the European Investment Bank to issue bonds and tokenized a sovereign green bond for the Hong Kong Monetary Authority.
McDermott, who has been a strong advocate for digital transformation and blockchain technology, has been a key figure in Goldman’s digital asset initiatives. A 19-year veteran at Goldman, McDermott was instrumental in establishing the bank’s digital asset desk in 2021 and spearheaded the development of its cash-settled crypto derivatives trading products.
Goldman Sachs’ entry into the tokenization arena comes as rival firms like BlackRock, Franklin Templeton, and Fidelity are already making notable advances in the "real-world asset" tokenization space. BlackRock CEO Larry Fink recently described tokenization as "the next generation" for markets. BlackRock’s Ethereum-based tokenized fund, BUIDL, recently surpassed over $500 million in assets under management.
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