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Goldman Sachs to Debut 3 Tokenization Products in 2024, Riding Digital Asset ETFs' Renewed Momentum

Goldman Sachs to launch new tokenization products in 2024.

Thu, 11 Jul 2024, 03:21 am UTC

Goldman Sachs is set to launch three new tokenization products in the US and Europe later this year, driven by a major uptick in client interest.

Goldman Sachs Eyes US and European Markets

Fortune published an interview with Mathew McDermott, the investment bank's global head of digital assets, on July 10. The interview states that, due to "a major uptick in interest from clients" in crypto, Goldman Sachs is getting ready to launch three new tokenization products in the US and Europe later this year.

Goldman Sachs aims to establish marketplaces for tokenized real-world assets (RWAs), with a concentration on the "fund complex" in the US and European debt markets, according to the article, which claims that McDermott, while declining to provide details, did mention this.

Permissioned Blockchains for Financial Institutions

McDermott allegedly went on to say that the investment bank will depend only on permissioned blockchains and that its new products will be aimed at financial institutions instead of individual investors. He predicted that the RWA marketplace would stand out from the crowd thanks to its lightning-fast execution and its growing list of collateral options.

According to Cointelegraph, the "renewed momentum in crypto" is allegedly due to McDermott's belief that digital asset exchange-traded funds (ETFs) are becoming more common.

Since US regulators finally gave the investment vehicles the go-ahead in January, nearly a dozen Bitcoin ETFs have been established. Analysts are predicting that multiple spot Ether ETFs will begin trading this month, and regulators are already analyzing their registration files.

Growing Popularity of RWA-Focused Funds

In the United States, RWA-focused funds are becoming increasingly popular. This is especially the case for funds that deal with tokenized money market instruments, like BUIDL, which just hit $500 million in AUM (assets under management). Last week, BlackRock reached this milestone. Second place goes to Franklin Templeton's OnChain US Government Money Fund (FOBXX), which manages about $400 million.

Fortune reports that the investment bank stands to gain even more from cryptocurrency in the months ahead if the US government takes a more lenient approach to regulation of the sector during the next presidential election.

"There could be other things that we as a firm would naturally be interested, subject to approval, to do, like execution and maybe sub-custody," McDermott allegedly stated.

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