Goldman Sachs is preparing to launch three tokenization projects for major institutional clients by the end of the year, the firm’s global head of digital assets, Mathew McDermott, told Fortune Crypto in a July 10 interview.
McDermott explained that tokenization, the process of converting real-world assets (RWA) into digital tokens, presents a crucial opportunity for the bank due to rising customer demand for such products.
He claimed:
“There’s no point in doing it just for fun. The clear feedback is that this is something that will actually change the nature of how they can invest.”
Speaking about the projects, he stated that they would focus on marketplaces for tokenized assets, accelerate transactions and diversify collateral assets. Meanwhile, he also revealed that one of the projects will focus on the US fund complex, while another will focus on European debt issuance.
Goldman Sachs’ move reflects growing institutional interest in tokenizing real-world assets. This trend has seen significant adoption, as evidenced by BlackRock’s BUIDL fund, which surpassed $500 million in assets under management in less than six months, despite broader market challenges.
Crypto Custody Tips
McDermott hinted that the company’s involvement in the crypto sector could expand to custodial services if the government’s regulatory approach changes.
He said:
“There may be other things that we as a company would of course be interested in, subject to approval, such as execution and perhaps sub-custody.”
As the US presidential elections approach, crypto has become a major political issue. The leading candidates – President Joe Biden and former President Donald Trump – have shown significant interest in the sector, although their positions differ.
While Biden has begun to soften his administration’s previous stance on the sector, Trump has publicly expressed strong support for the sector and pledged to create an environment conducive to growth.
As a result, many crypto stakeholders have publicly supported Trump’s presidency. They believe he will implement regulatory changes that will allow the industry to flourish and protect it from strict financial regulators such as the U.S. Securities and Exchange Commission (SEC).