Goldman Sachs Group Inc. NYSE: GS) is advancing its blockchain ambitions, planning to spin out its digital-assets platform into an independent company within the next 12 to 18 months.
What Happened: The platform aims to enable large financial institutions to create, trade, and settle financial instruments using blockchain technology, Bloomberg reported.
Mathew McDermott, Goldman's global head of Digital Assets, revealed the plans, emphasizing the importance of making the platform "industry-owned" to benefit the broader market.
The move is contingent on regulatory approval.
Goldman is actively engaging with potential partners to enhance the platform's capabilities and explore new commercial applications.
The first strategic partner, Tradeweb Markets Inc., has already joined forces with Goldman to develop use cases, marking a significant step toward the initiative's realization.
Goldman's spin-out plan reflects a broader trend of financial institutions leveraging blockchain to streamline the issuance, trading, and settlement of traditional assets like cash and bonds.
Blockchain technology offers a faster, more efficient alternative to conventional systems, a proposition increasingly attractive to institutional players.
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Bitcoin's recent surge to $93,000 has further bolstered confidence in the transformative potential of digital assets.
"Despite market volatility, we see significant long-term opportunities for blockchain and Bitcoin in institutional finance," McDermott said.
Goldman's optimism is evident in its investments in blockchain-backed financial products.
Earlier this year, the firm partnered with DRW Capital to allocate $600 million across spot Bitcoin and Ethereum ETFs, signaling a strong commitment to the sector's growth.
In addition to its blockchain platform, Goldman is exploring opportunities to facilitate secondary transactions in private digital-asset companies, providing liquidity for clients like family offices while allowing buyers to capitalize on private market discounts.
The bank is also preparing to resume its Bitcoin-backed lending activities, highlighting its confidence in Bitcoin's role as a financial instrument.
Goldman's efforts align with renewed momentum in the crypto market following Donald Trump's election victory.
Investors are betting on favorable digital asset policies under his administration, driving institutional interest and regulatory clarity.
These developments will be central to discussions at Benzinga's Future of Digital Assets event on Nov. 19.
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