The news that Goldman Sachs is considering its own cryptocurrency is a significant development for the crypto sector. Mathew McDermott, Goldman Sachs’ new digital asset global head, confirmed that the U.S. investment bank was exploring whether to launch its own digital asset, CNBC reported Thursday.
This is a significant pivot in strategy by Goldman following a refutation of Bitcoin as an asset class back in May.
Goldman Sachs Is Now Recognizing The Value Of Digital Assets Of Stablecoin
“It is encouraging to see that traditional financial institutions, such as Goldman Sachs, who just a few months ago were pulling away from cryptocurrencies, are now recognizing the value of digital assets. I expect that this move will be reassuring to Goldman Sachs investors, who otherwise may find it difficult to gain exposure to this innovative asset class.
It’s interesting to note that Matthew McDermott proposed the idea of a stablecoin – until further information is available, it’s difficult to assess why or if we need another stablecoin, what it is backed by and whether a large regulated financial institution is trusted globally to succeed. Imagine, for example, if Lehman Brothers backed a stablecoin…
There are big strides being made in the crypto space, with the first digital EU state currency issued on the NEM blockchain and other large institutions showing increasing interest in both CBDCs and fund backed stablecoins in the ecosystem. This is an encouraging step for the space as a whole, but altogether unsurprising given recent investments made by competitors JP Morgan and Fidelity.”
Konstantin Richter, CEO and Founder of Blockdaemon:
“There has been wider adoption of cryptocurrency to the mass market and a convergence of regulatory clarity with the Office of the Comptroller of the Currency (OCC) granting national banks in the US permission to operate crypto custody services. It is necessary for institutions like Goldman Sachs to see crypto and blockchain technologies in a new light and test the waters with their own token. Bitcoin has shown that it can stabilize and with the recent bullish run, offering a stablecoin allows them to stay relevant with the latest blockchain-related advancements. Customer demand will drive revenue and open up new channels so it would only be detrimental to their business if they didn’t explore this opportunity.”