Goldman Sachs To Launch Three Tokenization Projects By Year-End: 'It'll Change The Nature Of How Clients Can Invest'

Ahead of the year's end, Goldman Sachs GS plans to roll out three new tokenization projects, expanding its crypto offerings.

What Happened: According to Fortune on Wednesday, these initiatives will include tokenizing real-world assets like money market funds and real estate holdings on public or private blockchains.

Matthew McDermott, global head of digital assets at Goldman Sachs, emphasized that the projects are driven by client demand, stating, "The definite feedback is, this is something that actually will change the nature of how they can invest."

Goldman Sachs has previously engaged in tokenization, including a bond issuance with the European Investment Bank and a sovereign green bond for the Hong Kong Monetary Authority.

One of the upcoming projects will focus on the fund complex in the U.S., while another will involve debt issuance in Europe. McDermott did not provide further specifics.

With the U.S. presidential election approaching, McDermott noted that regulatory changes could expand the bank's opportunities in the crypto space, potentially allowing it to hold spot crypto assets.

Also Read: Ethereum Traders Offload $41M In ETH, But ‘Bears Will Get Exhausted,’ Trader Asserts

Why It Matters: The tokenization of financial assets is transforming investment opportunities for individuals and businesses. By allowing fractional ownership, investors can hold a part of a high-priced asset, such as real estate, rather than purchasing the entire asset.

Larry Fink, CEO of BlackRock, estimates that tokenization could surpass Bitcoin's market cap, which stands at $1.3 trillion.

Financial behemoth BlackRock Inc BLK has submitted a filing with the Securities and Exchange Commission, outlining plans to create a new fund centered on tokenized assets. The firm has kept the total size of the fund under wraps.

Though BlackRock opted not to reveal the fund's size in its filing, it mentioned that investments could range anywhere from $1 to a cap of $100 million.

Whats Next: The impact of tokenization is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next:

• Spot Ethereum ETFs Could Launch In A Week Or Two, Says ETF Analyst Nate Geraci: ‘How Quickly Will SEC Turn These Around?’

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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