Goldman Sachs to Spin Off Digital Assets Platform

Goldman Sachs is preparing to launch a new company focused on its digital assets platform. The venture aims to allow large financial institutions to create, trade, and settle financial instruments using blockchain technology.

The investment bank is currently in discussions with several potential partners to expand the platform’s capabilities and explore commercial applications. 

Goldman Sachs Looking to Venture Further into Blockchain and Crypto 

According to Bloomberg reports, the spin-off is still in the early stages but it’s expected to be finalized within the next 12 to 18 months. This is, however, subject to regulatory approval.

Also, Tradeweb Markets Inc., an electronic trading platform, announced its partnership with Goldman Sachs, becoming the first strategic partner for the digital assets platform. 

This collaboration will potentially help the firm develop additional use cases that leverage blockchain for financial transactions.

“It’s in the best interest of the market to have something that is industry-owned,” the platform’s Global Head of Digital Assets told Bloomberg.

Goldman’s move reflects a broader industry trend, where major financial institutions and governments are adopting blockchain technology to enhance the efficiency of traditional asset trading and settlement processes. 

The platform’s goal is to enable faster and more cost-effective transactions for assets like cash and bonds.

In a separate initiative, the firm is also exploring ways to support secondary market transactions for private digital asset companies. Goldman Sachs wants to address the growing demand from its clients and expand its business features. 

Bullish on Bitcoin

Goldman has maintained a bullish stance on Bitcoin throughout the year, even as its price dipped to $60,000. 

Despite outflows from Bitcoin ETFs in Q3, the firm noted increasing activity from institutional investors. Bitcoin’s recent surge to nearly $93,000 underscores Goldman’s confidence in the token’s long-term potential.

Earlier this year, Goldman Sachs and DRW Capital revealed a combined $600 million investment in spot Bitcoin and Ethereum ETFs. Goldman holds $410 million in Bitcoin ETFs, with substantial stakes in BlackRock’s IBIT and Fidelity’s FBTC funds.

In July, Goldman Sachs announced plans to roll out three tokenization projects in 2024. These initiatives aim to serve institutional clients and offer new opportunities for asset diversification.