Goldman Sachs Embraces Blockchain to Modernize Traditional Finance
According to Bloomberg, Goldman Sachs is exploring how blockchain technology can improve traditional financial markets, such as private equity.
Managing Director Mathew McDermott said the bank is “fully supportive” of blockchain applications following the successful launch of its blockchain tokenization platform GS DAP and plans to hire more experts in the field.
Although Goldman Sachs recently laid off approximately 3,200 employees, its commitment to hiring blockchain experts demonstrates the potential value of the technology in traditional banking.
Goldman’s private blockchain platform, GS DAP, was recently used to sell a green bond, allowing for a one-day settlement compared to the usual five days.
McDermott believes the blockchain platform can tokenize various assets but doubts it will significantly improve initial public offerings or equities.
He thinks the technology will provide transparency and accurate pricing, increasing liquidity and attracting more investors to secondary markets.
However, it’s unlikely that traditional financial transactions will move to public blockchains soon due to regulatory uncertainty and distrust of cryptocurrencies.