• Goldman Sachs Group believes blockchain technology has potential to improve traditional financial markets.
• GS DAP is a private blockchain developed by Goldman Sachs recently used by Hong Kong for tokenization and selling a green bond.
• Goldman remains „hugely supportive“ of blockchain applications and plans to hire additional experts in the field as needed.
Goldman Sachs Group Embraces Blockchain Technology
The Wall Street giant Goldman Sachs Group told Bloomberg News on February 28th that it is “hugely supportive” of exploring further use cases for blockchain technology, and plans to hire additional experts in the field as needed. This comes shortly after the company laid off roughly 3200 employees, adding further weight to the potential of blockchain technology application in traditional banking.
GS DAP Platform
Goldman’s blockchain tokenization platform, GS DAP, is a private blockchain developed by Goldman Sachs that was recently used by Hong Kong to tokenize and sell a green bond. This enabled settlement one day after trade versus the normal five days it takes with traditional methods. Private blockchains are generally centralized compared to public blockchains like Bitcoin and Ethereum.
Benefits To Investors
Mathew McDermott, managing director at Goldman Sachs, believes GS DAP can be used to tokenize a multitude of assets in the traditional financial markets such as private equity, derivatives and fund units. He added that this platform gives investors greater transparency and accurate pricing of assets which encourages liquidity and brings more investors into secondary markets.
Regulatory Uncertainty & Distrust Of Crypto
McDermott also said that it is unlikely that traditional financial transactions will move over to public blockchains any time soon due to regulatory uncertainty and distrust of crypto prevalent today.
Overall, Goldman Sachs remains committed to exploring further use cases for blockchain technology which shows promise in terms of improving various TradFi markets such as private equity while bringing greater transparency and accurate pricing options for investors throughout secondary markets.