Goldman Sachs wants to scale its business using blockchain
The 21st century is the era of technological marvels. A majority of businesses operating today use advanced equipment to increase productivity. Blockchain has managed to enter large markets and attracted big guns from various sectors. Recently, Goldman Sachs, an investment banking firm, revealed that they are open to hiring people in their digital assets segment.
The company strongly supports Blockchain
Matthew McDermott, global head of Goldman Sachs, revealed in an interview that the company is very supportive of the technology, Bloomberg reported. Goldman Sachs’ tokenization platform, GS DAP, is a private blockchain network and has increased the number of employees from 4 in 2020 to 70 currently. The platform was used for tokenized green bonds in Hong Kong. The organization believes that they can use it for their other assets as well.
Most people associate the technology with crypto assets, but the use cases go beyond them. The basis for the mentality comes from the fact that the concept entered the mainstream along with the flagship crypto-asset, Bitcoin, in January 2009. From storage to tracking, companies in various sectors are using blockchain accordingly.
2022 was a year of turmoil for the cryptocurrency market. Unfortunate ecosystem failures including TerraUSD in May 2022 and FTX in November 2022. The events caused several investors to flee the market as their confidence faded. Companies like Three Arrows Capital, Anthropic, BlockFi and more had their exposure to one of the failed networks.
The events also caught regulatory eyes on the sector, leading them to tighten the belt across the sector. The Securities and Exchange Commission (SEC) has called the crypto market a financial wild west. Gary Gensler, SEC chairman said during the Twitter room hosted by the US Army that a majority of these assets will fail.
Nevertheless, blockchain technology is not exclusive to the cryptocurrency sector. Many experts believe that crypto may fall, but blockchain will remain. According to the data, 10% of the global population holds virtual currencies while 16% of US citizens have invested in them.
The blockchain sector is expected to reach $163.83 billion by 2029 at a compound annual growth rate (CAGR) of 56.3%. Furthermore, banking remains the largest segment using the technology, accounting for over 29% market share. Data shows that entities spent $6.6 billion on blockchain solutions in 2021. In addition, cross-border payments remain the primary use case associated with the technology.
Large companies such as Microsoft, Adobe, International Business Machine (IBM), Andreessen Horowitz (A16Z) and more have integrated the technology with their business. Furthermore, experts believe that industrial blockchain could top $85 billion by 2023.
People are slowly learning the fact that blockchain is the underlying technology that cryptoassets use. With reputable companies identifying more use cases related to this technology, it could strengthen to a large extent in the future.
Anurag has been working as a founding writer for The Coin Republic since 2021. He enjoys exercising his curiosity muscles and researching deeply into a topic. Although he covers various aspects of the crypto industry, he is quite passionate about Web3, NFTs, Gaming and Metaverse, envisioning them as the future of the (digital) economy. A reader and writer at heart, he calls himself an “average guitar player” and a fun soccer player.
