Goldman Sachs Set to Introduce Three New Tokenization Products This Year: Report

Goldman Sachs is gearing up to introduce three new tokenization products in the United States and Europe later this year. This move comes in response to a significant rise in client interest in cryptocurrencies, as reported by Fortune following an interview with Mathew McDermott, the global head of digital assets at the investment bank, on July 10.

Although McDermott did not disclose specific details, he mentioned that Goldman Sachs intends to develop marketplaces for tokenized real-world assets (RWAs). The focus will be on the U.S. fund complex and European debt markets, according to the report.

McDermott emphasized that these new products will be aimed at financial institutions rather than retail investors. The products will utilize permissioned blockchains exclusively. The RWA marketplace aims to stand out through quick execution and by broadening the range of assets that can serve as collateral.

He attributed the renewed interest in cryptocurrencies to the increasing number of exchange-traded funds (ETFs) for digital assets. Since January, when U.S. regulators approved these investment vehicles, nearly a dozen Bitcoin ETFs have been listed. Now, regulators are reviewing registration filings for several spot Ether ETFs, which analysts predict could begin trading as early as this month.

Funds focusing on RWAs are gaining momentum in the U.S., particularly those dealing with tokenized money market instruments. For instance, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) recently reached $500 million in assets under management. Similarly, Franklin Templeton’s OnChain US Government Money Fund (FOBXX) has about $400 million in assets under management.

Fortune noted that Goldman Sachs’ prospects in the crypto sector might further expand in the coming months, especially if the upcoming presidential election results in a more favorable regulatory environment for the industry.

“There could be other areas that we as a firm would naturally be interested in, pending approval, such as execution and possibly sub-custody,” McDermott mentioned.

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