Sat 13 Jul 2024 ▪
3
min of reading ▪ by
Goldman Sachs has announced the launch of three tokenization initiatives by the end of 2024, targeting money market funds and real estate. This strategic decision highlights the bank’s growing interest in crypto assets and its desire to differentiate itself from its competitors in the market.
Crypto: Goldman Sachs launches 3 tokenization projects!
Matthew McDermott of Goldman Sachs revealed that these projects aim to address the growing interest of institutional clients in asset tokenization. Tokenization, which involves converting real assets into crypto tokens, is seen as a major opportunity area for Goldman Sachs. It allows the creation of markets for tokenized assets, improving transaction speed, and diversifying the types of assets available as collateral.
The initial projects will focus on the US market. They will use private blockchains to ensure regulatory compliance and enhance transaction speed. Goldman Sachs thus joins other giants of traditional finance (TradFi) in the crypto space! With the objective of reshaping capital markets through the tokenization of real-world assets (RWA).
In addition to Goldman Sachs, other major financial institutions, such as JPMorgan and Citi, are actively exploring and investing in tokenization technologies. According to McDermott, the advent of Bitcoin and Ethereum (ETH) ETFs in the US market promises increased liquidity. With more liquidity in the space, Goldman Sachs anticipates that more pension funds, insurance companies, and other institutional investors will get involved.
The prospects for the RWA market
Consulting firms such as McKinsey and the Boston Consulting Group share this optimism. They predict that the RWA market will experience exponential growth to reach several trillion dollars by 2030. These forecasts highlight the importance of crypto tokenization and digital transformation of assets for the future of financial markets.
Goldman Sachs’ initiative to launch three tokenization projects represents a significant step in the adoption of crypto by traditional financial institutions. By incorporating tokenization into their operations, these institutions can secure transactions and communications! This paves the way for new forms of investment.
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The world is evolving and adaptation is the best weapon to survive in this undulating universe. Originally a crypto community manager, I am interested in anything that is directly or indirectly related to blockchain and its derivatives. To share my experience and promote a field that I am passionate about, nothing is better than writing informative and relaxed articles.
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