Goldman Sachs To Launch Three Tokenization Projects To Meet Surge In Client Interest
Banking giant Goldman Sachs is gearing up to expand its crypto offerings, as it embarks on an ambitious tokenization initiative. The move comes after the bank witnessed a surge in client interest.
According to Mathew McDermott, the global head of digital assets at Goldman Sachs, the bank is set to launch three tokenization projects by the end of this year. The three projects are in partnership with major clients, marking the bank’s first venture into the US tokenization market.
Tokenization continues to be a focal point for Goldman Sachs. The bank has already made inroads in this field.
Goldman Sachs collaborated with the European Investment Bank on a bond issuance in 2022 and tokenized a sovereign green bond for the Hong Kong Monetary Authority in 2023.
People have been talking about institutional money flowing into crypto for years.
But this time it’s legit. Blackrock, Goldman Sachs, the list goes on.
The big boys have finally arrived.
Are you ready? 😎💰 https://t.co/b5cm2y0q3p
— NeurospicyDegen.eth 🧠✨ (@NeurospicyDegen) July 10, 2024
Goldman Focused On Products Investors Truly Desire
While companies like BlackRock and Franklin Templeton are also exploring tokenization, McDermott said in a media interview, “the key to success lies in creating products that investors truly desire.”
To gather insights, Goldman Sachs recently organized a digital assets summit in London, attended by over 500 clients. McDermott revealed that the feedback received highlighted the potential to revolutionize the investment landscape through tokenization, indicating a shift in how clients perceive investment opportunities.
In addition, Goldman Sachs launched the Goldman Sachs Digital Asset Platform in 2023 to facilitate asset tokenization.
While McDermott did not disclose specific details about the upcoming tokenization projects, he revealed that one project focuses on the US fund complex, while another centres around debt issuance in Europe.
Goldman’s Role In Launch Of Bitcoin ETFs
Goldman Sachs claims to have played a significant role in the launch of Bitcoin exchange-traded funds (ETFs) earlier this year, which sparked a renewed momentum in the crypto market.
McDermott acknowledged this upswing, contrasting it with the more cautious stance expressed by some within the bank, such as Sharmin Mossavar-Rahmani, the chief investment officer for Goldman Sachs Wealth Management.
Read more: What are Bitcoin ETFs? A Beginner’s Guide
Mossavar-Rahmani had previously stated her skepticism regarding crypto as an investment asset class and cited limited interest from clients.
McDermott acknowledged the diversity of opinions within the institution, noting that Goldman Sachs remains active in the crypto space from an institutional perspective, engaging in activities such as trading cash-settled crypto derivatives for clients and participating in the ETF markets.
$500M Worth Dubai Real Estate To Be Tokenized
Tokenization of real-world assets has gained traction in the crypto industry for expanding the use cases for blockchain technology.
As reported, $500 million worth of assets are going to be tokenized in Dubai. Credit goes to the partnership between Mantra Chain, known for enabling the fractionalization and tokenization of real-world assets, and the popular Dubai-based real estate developer, MAG Group.
🔥 UAE Real Estate Giant #MAG Partners with #MANTRA to Tokenize $500 Million in Real Estate Assets
✅ MANTRA and MAG will collaborate to democratize access to luxury UAE real estate using secure, yield-bearing vault products backed by MANTRA’s L1 technology.
This collaboration… pic.twitter.com/eVrwOUUa9H
— MANTRA – Tokenizing RWAs (@MANTRA_Chain) July 3, 2024
Investors participating in the tokenization initiative will have the opportunity to earn yield through stablecoins and Mantra’s OM token. The expected yield from stablecoins is 8%, while investors are also set to receive additional OM tokens.
EXPLORE: How to Buy Bitcoin in Dubai, UAE
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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