- The spinout will create an “industry-owned” company.
- Goldman has been making more inroads into crypto and blockchain in 2024.
Investment bank Goldman Sachs is set to spin its cryptocurrency platform in favour of a separate industry-owned company. The new company to be created will focus on creating, trading, and settling financial instruments on blockchain.
Goldman says the digital assets platform, known as GS DAP, will partner with Tradeweb Markets, an electronics trading entity, and others to expand its platform uses. The bank’s global head of digital assets, Mathew McDermott, said in an interview:
“The bank is in talks with a number of market participants on the plans as it continues to build out the platform’s capabilities and develop new commercial use cases.”
Plans for the spinout are still in the early stages, but McDermott says the bank expects to complete the process in the next 12 to 18 months, subject to regulatory approvals.
See Related: HSBC Survives Bid By Top Shareholder To Spin Off Lucrative Asian Operations
Goldman Among Leading Banks Eyeing Crypto
In light of the growing demand and popularity of digital assets, Goldman has been a leading Wall Street Bank with eyes on the sector. In July, the bank mentioned its plans to launch three new tokenization products in the US and Europe. The bank also seeks to create marketplaces for tokenized real-world assets.
Goldman has made inroads following the approvals of spot Bitcoin ETFs earlier this year. The bank was, alongside other asset managers Capula Management and Avenir Tech, the biggest buyers of BTC ETFs in the second quarter of 2024.
