Goldman Sachs to Introduce Three Tokenization Initiatives in 2024

Goldman Sachs is set to launch tokenization projects by the end of 2024, targeting money market funds and real estate, according to a July 10 report.

Fortune reported that Goldman Sachs seeks to leverage public or private blockchains to tokenize real-world assets (RWAs), enhancing investment opportunities. The company’s three projects with major clients include its first in the United States.

RWAs as New Investment Opportunities

The bank has previously worked on tokenization projects, including a bond issuance with the European Investment Bank and a sovereign green bond for the Hong Kong Monetary Authority. These initiatives are part of Goldman’s broader strategy to offer digital asset solutions.

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Matthew McDermott, global head of digital assets at Goldman Sachs, emphasized the importance of creating investor-desired products. The bank recently hosted a digital assets summit in London, which saw considerable client interest in tokenized assets.

“There’s no point doing it just for the sake of it,” said McDermott. “The definite feedback is that this is something that actually will change the nature of how they can invest.”

Tokenization Projects in the US and Europe

McDermott also referred to the launch of the exchange-traded funds (ETFs) as generating a “renewed momentum in crypto,” though this enthusiasm is not universally shared within Goldman Sachs.

“The nice thing is, about an institution of our size, there are differing views,” said McDermott. “We’ve continued to see, certainly this year, an uptick and a broadening in the product suite that clients would like to see available.”

McDermott declined to provide specifics on the three tokenization projects set to launch this year but mentioned that one project focuses on the fund complex in the U.S., while another targets debt issuance in Europe.

He noted that the bank’s opportunities in the space could expand, including holding spot crypto assets.

“There could be other things that we as a firm would naturally be interested, subject to approval, to do, like execution and maybe sub-custody,” he said.