Goldman Sachs ‘highly supportive’ of exploring further use cases for blockchain technology
Goldman Sachs Group believes blockchain technology can help improve various TradFi markets such as private equity and is committed to exploring additional use cases for the technology, Bloomberg News reported on February 28.
Goldman CEO Mathew McDermott told Bloomberg that the lender is “hugely supportive” of blockchain applications following the recent launch of its blockchain tokenization platform GS DAP and is looking to hire more experts in the field as needed in the coming months.
Considering that the Wall Street giant has recently laid off approximately 3,200 employees, the interest in hiring blockchain experts further emphasizes the potential of using blockchain technology in traditional banking.
GS DAP is a private blockchain developed by Goldman Sachs that was recently used by Hong Kong to tokenize and sell a green bond. The platform enabled settlement one day after trading versus the usual five days it takes traditional methods. Private blockchains are generally centralized compared to public blockchains such as Bitcoin and Ethereum.
McDermott believes the GS DAP can be used to symbolize a range of assets in the traditional financial markets, including private equity, derivatives and mutual funds. However, he added that blockchain technology is unlikely to bring improvements to IPOs or stocks, as they are already effectively settled.
McDermott said the blockchain platform provides investors with greater transparency and accurate pricing of assets which encourages liquidity and in turn will bring more investors to the secondary markets.
McDermott also said that traditional financial transactions are unlikely to move to public blockchains in the near future and will likely take years as regulatory uncertainty and mistrust of crypto is still widespread.
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