Upcoming Tokenization Projects
Goldman Sachs plans to launch tokenization projects by the end of 2024. These projects will focus on money market funds and real estate. The July 10 report highlighted these upcoming initiatives.
Leveraging Blockchain for Real-World Assets
Fortune reported that Goldman Sachs aims to use public or private blockchains to tokenize real-world assets (RWAs). This strategy will enhance investment opportunities. Three projects with major clients, including one in the United States, are part of this effort.
Real-World Assets as New Investment Opportunities
Goldman Sachs has previously worked on tokenization projects. These include a bond issuance with the European Investment Bank and a sovereign green bond for the Hong Kong Monetary Authority. These efforts align with Goldman’s broader strategy to offer digital asset solutions.
Client Demand for Tokenized Assets
Matthew McDermott, global head of digital assets at Goldman Sachs, emphasized creating products that investors desire. The bank hosted a digital assets summit in London, attracting significant client interest in tokenized assets.
“There’s no point doing it just for the sake of it,” McDermott said. “Feedback indicates that this will change how they invest.”
US and European Tokenization Projects
Goldman Sachs will launch tokenization projects in the US and Europe. McDermott mentioned the launch of exchange-traded funds (ETFs) has generated renewed momentum in crypto.
“Our institution has diverse views,” McDermott said. “This year, we’ve seen increased interest and a broader product suite from clients.”
Future Opportunities and Expansions
McDermott did not provide specifics on the three tokenization projects set to launch. However, he mentioned one project focuses on the fund complex in the US, while another targets debt issuance in Europe.
The bank may expand its opportunities, including holding spot crypto assets.
“There could be other areas we’re interested in, subject to approval, such as execution and sub-custody,” he noted.
