Goldman Sachs is making significant strides in the digital finance arena. At the TOKEN2049 conference in Dubai on May 3, Mathew McDermott, the head of the bank's digital assets division, announced plans to introduce a 24/7 trading service for tokenized U.S. Treasury bonds and money market fund shares. This move aims to enhance liquidity and provide continuous access to these financial instruments.
Currently, Goldman Sachs operates a crypto derivatives trading desk and is set to launch three tokenization projects by the end of 2025. These projects include a U.S. fund tokenization initiative and euro-denominated digital bonds. The bank is also considering spinning off its digital asset platform, GS DAP, into an independent entity to serve multiple institutions, thereby enhancing efficiency and liquidity.
GS DAP, developed using Digital Asset's Daml smart contract language and the Canton blockchain, has already been utilized for significant transactions, such as a €100 million digital bond issuance for the European Investment Bank. The platform's potential spin-off is aimed at fostering broader market participation and accelerating the adoption of blockchain technology in institutional trading.
This strategic direction underscores Goldman Sachs' commitment to leveraging blockchain technology to modernize financial markets and meet the evolving needs of institutional clients.