You might have noticed, but institutions are increasingly interested in both crypto and prediction markets. Goldman Sachs CEO David Solomon recently stated that the firm is significantly increasing its research and internal discussions on crypto technologies, with particular emphasis on stablecoins, asset tokenization, and regulated prediction markets.

During the firm’s fourth-quarter earnings call in January 2026, Solomon highlighted that large teams, including senior leadership, are actively evaluating how these technologies could expand and accelerate Goldman’s core business operations over the long term.

He also disclosed that in the early weeks of 2026, he personally met with leaders from major prediction market platforms to gain deeper insights into their business models and regulatory frameworks.

This move aligns with Wall Street’s gradual shift from viewing crypto infrastructure as fringe to actively exploring its integration into traditional finance.

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Goldman Sachs Explores Crypto: Tokenization, Stablecoins, and Prediction Markets

Start with tokenization. Think of it like turning a paper stock certificate into a digital one that lives on a blockchain. The asset stays the same. The rails change.

Goldman already tested this idea with BNY Mellon by offering tokenized money market funds through its GS DAP platform. This lets institutions move and settle shares faster using blockchain rails.

The tokenized real-world assets (RWA) sector, excluding stablecoins, experienced robust growth in 2025, reaching figures in the range of $18–33 billion by year-end, driven primarily by tokenized U.S. Treasuries, private credit, and money market funds.

Tokenized Treasuries alone accounted for a substantial portion, highlighting strong institutional demand for yield-bearing, regulated products.

Real world assets TVL

(Source: DefilLama)

The bank also highlighted stablecoins. These are digital dollars designed to hold a steady $1 value. Think of them as cash that moves like crypto but behaves like money in your bank.

2025 became the so-called “summer of stablecoins” after the U.S. passed the GENIUS Act, the first federal rulebook for dollar-backed stablecoins. The passage of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act in July 2025 marked a watershed moment, establishing the first federal regulatory framework for dollar-backed stablecoins. The legislation requires 1:1 reserves, transparency through disclosures, and oversight by federal or qualifying state regulators, with provisions for larger issuers to transition to federal supervision.

This clarity spurred significant institutional participation, propelling the total stablecoin market capitalisation to approximately $306 billion by late 2025, reflecting nearly 50% growth over the year.

Finally, Goldman mentioned prediction markets. These are platforms where people trade on real-world outcomes, like elections or rate cuts. In the U.S., some now operate under CFTC oversight, which lowers legal risk.

Platforms like Kalshi (a fully regulated CFTC-designated contract market) and others have seen explosive growth, particularly following legal victories clarifying their status and expanded offerings.

Volumes surged in 2025 amid high-profile events, with regulatory developments, including CFTC approvals for additional platforms, reducing legal uncertainties and enabling broader participation.

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Why Wall Street is Moving On-Chain and Changes The Game

Goldman Sachs’ involvement sends a clear message to regulators, asset managers, and the broader financial ecosystem: blockchain-based technologies are transitioning from experimental to strategic priorities. This is part of a larger wave of institutional adoption favouring regulated, utility-driven tools over speculative ones.

Tokenized real-world assets already passed $7 billion in 2025.

This means faster settlement, fewer middlemen, and lower back-end costs over time. It also explains why firms like JPMorgan and Galaxy Digital push their own tokenized products.

This trend fits the broader theme of institutional crypto adoption. Big money prefers boring, regulated tools. That is where stablecoins and tokenization shine.

DISCOVER: 

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Fatima
Fatima
Crypto Journalist

Fatima is a rising crypto journalist with a sharp eye for hidden gems and technical analysis. When she's not charting the next big breakout or diving into onchain data, a firm believer that alpha is where you least expect it,... Read More

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