How Goldman Sachs is building on Blockchain
Investment bank Goldman Sachs is “very supportive” of blockchain technology and has developed one tokenization platform on the blockchain.
As the blockchain industry matures, nations and banks realize its use and potential. Mathew McDermott, the global head of digital assets at Goldman Sachs, told Bloomberg that the bank is a “big supporter” of blockchain technology and is looking forward to expanding its staff.
Tokenization platform Built on Private Blockchain
The bank has developed GS DAP, a tokenization platform built on a private blockchain. Hong Kong used the GS DAP platform for the sale of tokenized green bonds for $102 million. The European Investment Bank also uses GS DAP to reduce bond settlement from five days to the same day.
Since GS DAP is effective for settlement, stock pricing and listing, McDermott believes it can be used for other assets as well. The manager sees potential uses for options, fund shares, derivatives and private equity.
McDermott says: “The blockchain platform allows investors to see more data, have more transparency, more accurate pricing of an asset, which will then encourage more liquidity and hopefully bring more investors into the secondary market.”
Conversely, the Goldman Sachs boss seems skeptical of public blockchains such as Bitcoin and Ethereum. He believes that large transactions on public blockchains could be years away due to regulatory concerns.
Goldman Sachs is rapidly increasing its digital assets team
Despite laying off 3,200 employees in December, Goldman Sachs wants to increase the number of employees in its digital assets team “as needed.”
McDermott took over as Global Head of Digital Assets in 2020, managing a team of four. Since then, the team has grown to 70 members in three years.
Goldman Sachs is one of the largest investment banks in the world, managing over $2 trillion in assets under management. The bank also plans to invest in crypto companiespost shakeout due to the FTX collapse.
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Disclaimer
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