Goldman Sachs is set to launch three tokenization projects in 2024, focusing on institutional clients and asset diversification. These projects will use private blockchains for compliance and transaction speed, setting Goldman Sachs apart from competitors.
The bank’s head of digital assets, Mathew McDermott, aims to create marketplaces for tokenized assets, enhance transaction speeds, and diversify collateral types. The initial projects will target the US market, focusing on the US fund complex and European debt issuance.
Goldman Sachs will focus on public blockchains and target retail customers, leveraging increasing market liquidity driven by the introduction of Bitcoin and Ethereum ETFs in the US. Other major financial institutions, such as JPMorgan and Citi, are also investing in tokenization technologies.
The approval of Bitcoin spot ETFs in January has made RWA tokenization one of the most optimistic trends in 2024. This development could transform capital markets and drive innovation, attracting significant interest from industry leaders. Projects like Decentralized ETF (DETF) and other crypto-native initiatives have been working on tokenization and RWA development for years.
RWA tokenization involves converting tangible assets like bonds, real estate, and debt into digital tokens on blockchain networks. The growing potential of tokenized assets has gained mainstream attention, with BlackRock’s tokenized US treasury, BUIDL, becoming the largest tokenized fund in the market.
