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Goldman Sachs boosts tokenization efforts with new partnership

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Goldman Sachs, a big bitcoin booster, is bolstering its tokenization efforts by working with blockchain company Digital Asset.

Goldman Sachs will be able to utilise Daml, a development framework established by Digital Asset. That allows financial institutions to negotiate and execute agreements on the blockchain. As a result of the relationship, the firm revealed on Wednesday.

According to the statement, Daml, one of Digital Asset’s main technologies, would assist Goldman Sachs in developing its own “end-to-end tokenized asset infrastructure”. That will handle different asset classes on private and public blockchains.

Moreover, Daml-based solutions, according to Goldman Sachs’ global head of digital assets Mathew McDermott, may possibly speed up blockchain-based digitization workflows across financial institutions and clients by integrating diverse infrastructures.

“As we expand our tokenization capabilities, we’ll need solutions that can quickly capture the entire complexity and diversity of assets at the heart of our company. Whether they’re digitally native or tokenized traditional assets, and that are interoperable across various blockchains.”

“Extensive study”

In fact, Daml is a platform for constructing multi-party apps. That uses the eponymous smart contract language to eliminate double processing and tedious labour. Additionally, Daml-based smart contracts used by some of the world’s major financial organisations. Including BNP Paribas’ securities arm, to construct real-time trade and settlement applications.

In June 2019, Goldman Sachs claimed to be conducting an “extensive study” on tokenization. Besides, CEO David Solomon pointed out that global payment networks were preparing to introduce stablecoins, which are fiat-pegged cryptocurrencies. The investment bank is famous for backing Circle, the creator of USD Coin (USDC), the world’s second-largest stablecoin by market cap behind Tether (USDT).

Goldman Sachs continues to investigate crypto investment products after opening a limited Bitcoin (BTC) derivatives trading desk in May 2021. In June, the firm revealed plans for Ether (ETH) derivatives.

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