Goldman Sachs Group Inc. NYSE:GS) is continuing its blockchain ambitions and plans to spin off its digital asset platform into an independent company in the next 12 to 18 months.
What happened: The platform aims to enable large financial institutions to create, trade and settle financial instruments using blockchain technology, Bloomberg reported.
Matthew McDermottGoldman’s global head of digital assets, revealed the plans, emphasizing the importance of making the platform “proprietary” so that it benefits the market as a whole.
This decision is contingent on regulatory approval.
Goldman is actively engaging with potential partners to enhance the platform’s capabilities and explore new business applications.
The first strategic partner, Tradeweb Markets Inc.has already partnered with Goldman to develop use cases, marking a significant step towards bringing the initiative to fruition.
Goldman’s split plan reflects a broader trend in which financial institutions are leveraging blockchain to streamline the issuance, trading and settlement of traditional assets such as cash and bonds.
Blockchain technology offers a faster and more efficient alternative to conventional systems, an increasingly attractive proposition for institutional players.
Also read: Bitcoin at $100,000 ‘seems close’, bulls are ‘on the right side of history’ – Bernstein
Bitcoin’s recent rise to $93,000 has further boosted confidence in the transformative potential of digital assets.
“Despite market volatility, we see significant long-term opportunities for blockchain and Bitcoin in institutional finance,” McDermott said.
Goldman’s optimism is evident in its investments in blockchain-backed financial products.
Earlier this year, the company partnered with DRW Capital to allocate $600 million to Bitcoin and Ethereum spot ETFs, signaling a strong commitment to the growth of the sector.
In addition to its blockchain platform, Goldman is exploring opportunities to facilitate secondary transactions in private digital asset companies, thereby providing liquidity to clients such as family offices while allowing buyers to capitalize on discounts from the private market.
The bank is also preparing to resume its Bitcoin-backed lending activities, underscoring its confidence in Bitcoin’s role as a financial instrument.
Goldman’s efforts align with renewed momentum in the crypto market following Donald Trump’s election victory.
Investors are betting on favorable digital asset policies under his administration, driving institutional interest and regulatory clarity.
These developments will be at the heart of discussions at Benzinga’s Future of Digital Assets event on November 19.
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