Goldman Sachs is preparing to allocate resources to a new company that will utilize blockchain technology for its digital asset platform aimed at major financial institutions. Mathew McDermott, the Head of Global Digital Assets, indicated that the platform aims to enhance efficiency through blockchain. The spin-out process is still in its early stages and is expected to take place within the next 12 to 18 months, contingent on regulatory approvals.
Crypto Business is Splitting
The newly formed company aims to facilitate the creation of financial instruments, trading, and investment services. This initiative will create a platform embraced by the industry, enabling financial institutions to effectively issue and trade assets like bonds and cash.
Partnerships and Strategic Steps
Tradeweb Markets Inc. has been announced as the first strategic partner for Goldman Sachs’s digital asset platform. This collaboration will focus on developing innovative trading use cases to enhance the platform’s benefits for financial firms.
“If you want to create a scalable market, you need the right strategic participants embracing this technology. You want an agile tool that can operate driven by commercial use cases,” – Mathew McDermott.
With the spin-out, Goldman Sachs is also expanding its digital asset offerings. Secondary transactions in private digital asset firms are being explored to provide liquidity options for family offices and other clients. McDermott noted that this approach will allow buyers to benefit from discounts in the private market.
Additionally, the bank plans to relaunch Bitcoin 
$91,651-backed lending services. This move reflects its commitment to providing comprehensive financial solutions in the cryptocurrency space. The digital asset unit, launched in 2022, has supported transactions such as bond issuance for the European Investment Bank.
Goldman Sachs’s initiative aligns with past spin-outs of software platforms like REDI Technologies and Simon. The new structure aims to address asset trading inefficiencies by integrating blockchain technology into mainstream financial systems.
The new venture follows Goldman’s significant $718 million investment in Bitcoin ETFs. This investment includes notable stakes in BlackRock iShares Bitcoin Trust and Grayscale GBTC, highlighting the increasing interest of traditional finance in cryptocurrency.
