• Goldman Sachs plans to convert its digital asset platform into a new blockchain venture
• The new company will enable large financial firms to create, trade, and settle financial instruments using blockchain technology
• Goldman Sachs is in early talks with potential partners, aiming to execute the spin-out within the next 12-18 months, pending regulatory approval
Goldman Sachs, the $3 trillion investment bank, is reportedly planning to convert its digital asset platform into a brand new blockchain venture, according to a Bloomberg report. This would be a massive development for the cryptocurrency industry.
Goldman Sachs Creating New Blockchain Company
The bank is currently in talks with potential partners, the report notes. Moreover, the new company will be created for larger financial firms to create, trade and settle financial instruments via blockchain technology.
The plans to spin out the existing platform will reportedly coincide with the development of new capabilities and use cases.
Details on the New Venture
It has been a game-changing year for cryptocurrencies. Since January, the asset class has seen its overall prevalence skyrocket, with institutional investment interest surging. With firms like BlackRock getting involved, crypto is proving its value and potential.
That is driving more well-known firms to get involved in its development. Among them is Goldman Sachs, which is reportedly set to convert its digital asset platform into a new company.
Specifically, the blockchain venture will look to help larger-scale financial entities settle financial instruments using the technology.
Early Stages But Long-Term Vision
Goldman Sachs’ global head of digital assets Matthew McDermott talked to Bloomberg about the idea. Although the talks are in the early stages, it already boasts a long-term vision.
Specifically, they plan to execute a spin-out in the next 12-18 months, barring regulatory approval. McDermott said “It’s in the best interest of the markets to have something that is industry-owned.”
To this point, trading platform Tradeweb Markets Inc has already said it will collaborate with Goldman Sachs on commercial use cases. Therefore, the company has become Goldman’s first strategic partner in this endeavor.
Conclusion
In summary, Goldman Sachs is planning a major move into the blockchain space by spinning out its digital asset platform into a new company. They aim to help financial institutions utilize blockchain technology through this venture. Although still in early stages, they already have a partner onboard and are working towards a 12-18 month timeline. This represents a huge vote of confidence in blockchain technology from a major financial player.
