Goldman Sachs Seeks Collaborators to Spin Out a Digital Assets Platform Business
In the dynamic world of finance, Goldman Sachs continues to make strides in the realm of blockchain and digital assets. Although the bank has not yet officially spun out a dedicated digital asset unit, recent developments suggest an impending move in this direction.
Mathew McDermott, Goldman's global head of Digital Assets, is reportedly considering spinning out the digital asset unit, with the long-term goal for the new company to be industry-owned. The specific details about the spin-out and the operational structure of the new Goldman Sachs digital asset unit are yet to be disclosed, and the bank has not provided any information about potential partners for the venture.
Goldman Sachs is already deeply involved in institutional blockchain collaboration. The bank is a key participant in the Canton Network’s institutional blockchain ecosystem, which includes major financial institutions such as J.P. Morgan and BNY Mellon. This initiative focuses on enabling instant settlement, sub-transaction privacy, and regulatory compliance for equity and debt transactions, including those involving privately held digital companies.
The broader regulatory landscape is evolving, with new legislation such as the proposed Digital Asset Market Clarity Act in the U.S. Congress and continued SEC engagement on tokenized securities and blockchain modernization, both of which could impact Goldman’s digital asset strategies.
Goldman Sachs is also positioning itself for future activity in the secondary market for shares or interests in privately held digital companies. The Canton Network’s infrastructure is designed to support secondary transactions in equity, which could streamline the process and potentially reduce transfer times while improving transparency and compliance.
However, there is no public announcement of a specific spin-out unit or dedicated platform for secondaries in digital companies at this time. Goldman’s current blockchain engagement is more focused on institutional equity and debt infrastructure than on retail or crypto-native lending products.
While there is no recent public announcement from Goldman Sachs regarding the resumption or expansion of Bitcoin-backed lending facilities directly on blockchain platforms, the bank appears committed to advancing its position in institutional blockchain and digital asset markets.
The news about Goldman Sachs' digital asset unit comes amidst the crypto industry's rally following Trump's re-election win on November 4th. Goldman Sachs plans to retain its digital assets team as it expands into broader activities in the space.
Notably, Goldman Sachs has partnered with the electronic trading platform Trade Markets to enable new use cases in the digital platform. The bank has also already used its Goldman Sachs Digital Asset platform, launched in 2022, by the European Investment Bank for the issuance of digital assets using blockchain technology.
Since its inception, JPMorgan's Kinexys platform has processed over $1.5 trillion in transactions, and JPMorgan's Kinexys (formerly Onyx) has been helping large financial institutions to issue tokenized products. The platform averages more than $2 billion in transactions per day and is not limited to Goldman Sachs, as it is helping other major U.S. banks venture into blockchain-based business.
As regulatory and market conditions continue to evolve, Goldman Sachs remains poised to capitalise on opportunities in the digital asset space, with the potential spin-out of its digital asset unit set to further cement its position.
- The news of Goldman Sachs' potential spin-out of its digital asset unit, aimed to be industry-owned long-term, indicates the bank's desire to make strides in the best and latest trends within the finance and technology sectors, as well as the digital assets industry.
- Goldman Sachs' strategic partnership with the European Investment Bank for digital asset issuance using blockchain technology showcases the bank's insights into the industry, as it leverages cutting-edge technology to offer the best news and services to its clients.
- As Goldman Sachs continues to engage in institutional blockchain collaboration projects, like the Canton Network and the partnership with Trade Markets, the bank demonstrates its commitment to stay ahead in the industry by providing the most comprehensive, innovative, and compliant solutions in the finance world.
