Goldman Sachs is plotting a bold move to spin off its digital assets platform into a standalone company.
Wall Street powerhouse Goldman Sachs is making a big push into digital assets. According to Bloomberg, the bank plans to spin off its digital assets business into a separate company within the next 12 to 18 months.
It aims to help large financial institutions create, trade and settle traditional assets, such as bonds and cash, on the blockchain. However, the plan is still awaiting regulatory approval.
Mathew McDermott, Goldman Sachs’ global head of digital assets, said the bank is in talks with strategic partners such as Tradeweb Markets to develop new trading applications for the platform. He stressed that building an industry-owned platform would be in the best interests of the market.
In addition, Goldman also plans to resume Bitcoin-based lending, demonstrating a recommitment after a period of hostility to cryptocurrencies.
Goldman Sachs is the first major US bank to open OTC crypto trading and launch a digital asset platform in 2022. Goldman also joined hands with Deloitte, Moody’s, DRW and Microsoft to build the Canton Network blockchain network.
Recently, the US bank has shown strong renewed interest in crypto-related products from hedge fund clients. As Coin68 reported in July, Goldman Sachs is launching three tokenized funds before the end of this year. One project will serve the US hedge fund sector, while two others will focus on the European market.
Despite the market volatility, the bank remains optimistic about the long-term role of Bitcoin and blockchain. Goldman’s investments in Bitcoin ETFs and blockchain-based financial products are the company’s commitment to digital assets. Four days ago, the bank increased its Bitcoin ETF holdings to $710 million. Bitcoin’s recent rally to $93,265 further solidifies that belief.
