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July 10, 2024

Goldman Sachs Preparing Move Into Tokenization Services Amid Interest From Clients: Report

By Alex Richardson

Banking giant Goldman Sachs is reportedly preparing to expand its crypto services with a focus on the tokenization of real-world assets (RWAs).

Speaking to Fortune, Goldman’s digital assets global head Mathew McDermott says the bank has “ambitious” plans for the sector.

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Since providing products that investors want will be the key to success, McDermott said the bank recently attended a crypto summit in London.

“There’s no point doing it just for the sake of it… The definite feedback is, this is something that actually will change the nature of how they can invest.”

McDermott says the recent launch and success of the Bitcoin (BTC) exchange-traded funds (ETFs) marked “renewed success” for the crypto industry, even if others at Goldman don’t share his enthusiasm.

“The nice thing is, about an institution of our size, there are differing views… We’ve continued to see, certainly this year, an uptick and a broadening in the product suite that clients would like to see available.”

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The executive also says that after the 2024 election, the bank’s opportunities could expand, including the ability to custody client crypto assets.

“There could be other things that we as a firm would naturally be interested, subject to approval, to do, like execution and maybe sub-custody.”

In an April interview, Goldman’s CIO of its wealth management division, Sharmin Mossavar-Rahmani, said the bank didn’t view crypto as an investment class because of the difficulty in valuing digital assets in the absence of traditional metrics like earnings, cash flow or dividends.

“We’re not believers in crypto.

If you cannot assign a value, then how can you be bullish or bearish?”

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