Goldman Sachs Expands Involvement in Crypto Industry

• Approval of bitcoin ETFs boosts retail interest and attracts new institutions.
• Tokenization trend grows, digitizing asset issuance for efficiency and liquidity.
• Crypto can transform financial system for more efficiency.
• Goldman Sachs deepens involvement in crypto, exploring ETFs and tokenization.
• McDermott sees potential for tokenization to broaden investor base and increase liquidity.
• Crypto may transform financial system efficiency, but unlikely to replace banks.

Summary :
Goldman Sachs, the global investment bank, is expanding its involvement in the crypto industry, according to Mathew McDermott, the firm's global head of digital assets. McDermott discussed various topics at Consensus 2024, including the success of the bitcoin exchange-traded fund (ETF) and the potential for the approval of other crypto-based ETFs. He also highlighted the growing trend of tokenization and the benefits it brings, such as improved operating efficiency and increased liquidity. McDermott sees tokenization as a powerful tool for asset issuance and believes it can attract a wider group of investors. While Goldman has been early to the tokenization trend, it has primarily used private, permissioned blockchains due to regulatory uncertainties. However, McDermott believes that as regulations become clearer, more asset classes like real estate and green debt issuance can be tokenized. He also stated that institutions like Goldman Sachs recognize the potential of crypto to transform parts of the financial system to operate more efficiently. Overall, McDermott's remarks indicate Goldman Sachs' continued interest and involvement in the crypto industry.

Sources :

- Coindesk