Goldman Sachs to Launch 3 New Tokenization Products This Year: Report

Goldman Sachs is set to introduce three new tokenization products in the US and Europe by the end of this year, driven by increased client interest in crypto.

Points

• Goldman Sachs plans to launch three new tokenization products.
• Focus on marketplaces for tokenized real-world assets （RWAs）.
• Targeting financial institutions rather than retail investors.
• Utilizing permissioned blockchains for these products.

Goldman Sachs is gearing up to launch three tokenization products later this year, targeting institutional clients in the United States and Europe. This strategic move follows a significant uptick in client interest in cryptocurrency, as highlighted in an interview with Mathew McDermott, the global head of digital assets at Goldman Sachs.

While McDermott did not provide specific details about the products, he mentioned that the bank plans to create marketplaces for tokenized real-world assets （RWAs）. The focus will be on the “fund complex” in the US and European debt markets. These initiatives aim to leverage the speed and diversity of permissioned blockchains.

Goldman Sachs is primarily targeting financial institutions with these new products, steering clear of retail investors. The firm plans to differentiate itself through the speed of execution and by expanding the types of assets that can be used as collateral.

Explanation

• Tokenization: The process of converting rights to an asset into a digital token on a blockchain.
• Real-World Assets （RWAs）: Physical assets like real estate, commodities, or art that are represented digitally on a blockchain.
• Permissioned Blockchains: Private blockchains that require permission to join and access the network, offering enhanced security and control.

Goldman Sachs’ new tokenization products underscore the growing trend of integrating digital assets within traditional financial markets, paving the way for more secure and efficient transactions.