Goldman Sachs is making a big move. They're planning to spin out their digital assets platform into an independent company in the next 12 to 18 months. This is part of their ongoing efforts in blockchain technology.
The firm has teamed up with Tradeweb to explore real-world uses for blockchain. This partnership marks a significant step toward getting more institutions on board with the technology. Goldman is also looking into private digital asset transactions and is set to resume Bitcoin-backed lending. This will help them expand their services in the digital asset space.
The new platform will allow large financial institutions to create, trade, and settle financial instruments using blockchain. Mathew McDermott, who leads Goldman’s Digital Assets division, highlighted the goal of making this platform “industry-owned.” This approach aims to benefit the wider market, but it all depends on getting the necessary regulatory approvals.
Goldman is actively seeking partners to enhance the platform's features and explore new commercial applications. Tradeweb Markets Inc. is already on board, working with Goldman to develop practical use cases for blockchain.
This spin-out reflects a growing trend among financial institutions. They are increasingly looking to blockchain to simplify how they issue, trade, and settle traditional assets like cash and bonds. Blockchain technology offers a faster and more efficient alternative to the conventional systems many are used to.
Bitcoin’s recent rise to $93,000 has boosted confidence in digital assets. McDermott stated, “Despite market volatility, we see significant long-term opportunities for blockchain and Bitcoin in institutional finance.” Goldman’s optimism shows in their investments in blockchain-backed financial products.
Earlier this year, Goldman partnered with DRW Capital to invest $600 million in spot Bitcoin and Ethereum ETFs. This move signals a strong commitment to the growth of the digital asset sector. In addition to their blockchain platform, Goldman is exploring ways to facilitate secondary transactions in private digital asset companies. This will provide liquidity for clients like family offices and allow buyers to take advantage of discounts in private markets.
Moreover, the bank is preparing to resume its Bitcoin-backed lending activities. This highlights their confidence in Bitcoin as a financial instrument. These efforts align with a renewed interest in the crypto market, especially after Donald Trump’s election victory. Investors are hopeful for favorable digital asset policies under his administration, which is driving institutional interest and regulatory clarity.
These developments will be key topics at Benzinga's Future of Digital Assets event on November 19.