Goldman Sachs to Strengthen Its Presence in the Crypto Ecosystem Through Initiatives in Tokenization and Lending

Goldman Sachs is planning to expand its presence in the crypto ecosystem with initiatives in tokenization and lending, according to Matthew McDermott, the bank’s global head of Digital Assets.

Speaking with CNBC’s Dan Murphy at the TOKEN2049 event in Dubai, McDermott said the investment bank is expanding its crypto trading operations and exploring opportunities in crypto lending and tokenization.

McDermott said there is increasing demand from Goldman Sachs’ clients for digital assets that will allow them to interact more directly with cryptocurrencies. The bank is working on launching these initiatives pending regulatory approval from the U.S. Securities and Exchange Commission (SEC).

Goldman Sachs is also broadening its scope in private capital to include tokenization and collateral liquidity, added McDermott.

The firm launched its crypto trading desk in 2021 and offers cash-settled Bitcoin and Ether options, as well as futures contracts listed on the CME. However, Goldman Sachs does not yet hold the underlying crypto assets.

Banks And Adoption Of Cryptocurrency

This comes as other financial institutions are also planning to integrate crypto products and services.

Morgan Stanley recently announced its intention to introduce crypto trading on its E*TRADE platform by 2026. The investment firm said it is planning to partner with existing crypto firms to build out the new feature.

The crypto regulatory landscape in the U.S. has reportedly shifted significantly since Donald Trump’s administration.

Earlier this year, it was reported that the SEC dropped its investigations into Coinbase (NASDAQ:COIN) and PayPal (NASDAQ:PYPL).

The Trump Organization’s executive vice president, Eric Trump, has been a vocal supporter of digital assets.

Speaking at the TOKEN2049 event, Eric Trump said the financial system must adopt cryptocurrencies or face obsolescence.

Taking his remarks a step further, Trump said he sees cryptocurrencies eventually replacing traditional fiat currencies and payment systems.

The recent moves by major financial institutions like Goldman Sachs and Morgan Stanley to adopt crypto strategies could pave the way for broader institutional adoption of digital assets.