Markets
Goldman Sachs Gets Into Cryptocurrency Tokenization! Billions of Dollars at Stake
4:00 p.m. ▪ 3 min read ▪ by Eddy S.
Goldman Sachs has announced the launch of three tokenization initiatives by the end of 2024, targeting money market funds and real estate. This strategic move underscores the bank’s growing interest in crypto assets and its desire to differentiate itself from its competitors in the market.
Crypto: Goldman Sachs launches 3 tokenization projects!
Goldman Sachs’ Matthew McDermott revealed that these projects are aimed at addressing the growing interest of institutional clients in asset tokenization. Tokenization, which involves converting real assets into cryptographic tokens, is seen as a major opportunity area for Goldman Sachs. It enables the creation of markets for tokenized assets, improve transaction speedand by diversifying the types of assets available as collateral.
The first projects will be focused on the US market. They will use private blockchains to ensure regulatory compliance and improve transaction speed. Goldman Sachs joins other traditional finance (TradFi) giants in the crypto space! With the aim of reshaping capital markets through the tokenization of real assets (RWA).
In addition to Goldman Sachs, other major financial institutions, such as JPMorgan and Citi, are actively exploring and investing in tokenization technologies. According to McDermott, the arrival of Bitcoin and Ethereum (ETH) ETFs in the U.S. market promises increased liquidity. With more liquidity in this sector, Goldman Sachs expects more pension funds, insurance companies, and other institutional investors to get involved.
RWA Market Outlook
Consulting firms like McKinsey and the Boston Consulting Group share this optimism. They predict that the RWA market will grow exponentially to reach several trillion dollars by 2030. These predictions underscore the importance of cryptocurrency tokenization and the digital transformation of assets for the future of financial markets.
Goldman Sachs’ initiative to launch three tokenization projects represents a significant step in the adoption of crypto by traditional financial institutions. By integrating tokenization into their operations, these institutions can secure transactions and communications! This opens the way to new forms of investment.
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Eddy S.
The world is changing and adaptation is the best weapon to survive in this undulating universe. Originally a crypto community manager, I am interested in everything that is closely or remotely related to blockchain and its derivatives. To share my experience and promote a field that fascinates me, there is nothing better than writing informative and relaxed articles.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decision.