Digital future: your own Fiat token? How Goldman Sachs wants to position itself in the crypto market | message
Shares in this article
Forex in this article
New head of digital assets
Mixed attitude at Goldman Sachs
The “commercial feasibility” of a token is checked
The US investment bank Goldman Sachs seems to have recognized for itself that the future lies in digital assets – or at least experienced sufficient competitive pressure coupled with increased demand. Because last month, the money house appointed a new Global Head of Digital Assets: Mathew McDermott. The US broadcaster CNBC reports. The former managing director should now secure a position for the bank in the emerging crypto market.
Goldman Sachs, Blockchain & Digital Assets: New Future for the Financial Sector
McDermott is taking over from Justin Schmidt, an MIT crypto trader who has led the digital asset team since 2018, and brings with him a clear vision, as he told CNBC exclusively: “One could be one in the next five to ten years Imagine a financial system in which all assets and liabilities are stored in a blockchain and all transactions take place in a chain. ”
Do you want to invest in cryptocurrencies? Our guides explain how to do it within 15 minutes:
Buy Bitcoin, Buy Ripple, Buy IOTA, Buy Litecoin, Buy Ethereum, Buy Monero.
The efforts should revolve around an in-house digital token. For this purpose, McDermott’s team will be doubled. According to CNBC, Goldman occasionally poached Oli Harris, who was previously involved with McDermott’s counterpart at JPMorgan and the development of the JPM Coin. The JPM Coin is the first cryptocurrency presented by a major bank – the plans for this project were announced last summer. Goldman is now following suit: “We are examining the commercial feasibility of creating our own digital fiat token, but we are only at the beginning while we are working through the potential applications,” CNBC quoted the new digital asset manager as saying.
A collaboration with the rival bank JPMorgan is even conceivable with regard to crypto efforts. McDermott also got in touch with Facebook, as the social network had announced Libra, an in-house Internet currency, more than a year ago. The outcry at this point was great, and supervisory authorities were alarmed – many sides were calling for regulation.
Wall Street Trend? Crypto adaptation is advancing
But it is not just the competition that has hurried ahead of the competition that seems to have moved Goldman to reorganize in this area. Rather, it was the trend towards cryptocurrencies: “We have definitely seen an increase in interest from some of our institutional customers who are looking into how they can get involved in this area,” explains McDermott. His statements get a tailwind from the latest data: As the crypto analysis company Chainalysis found out, the size of the transfers carried out by Wall Street giants with Bitcoin & Co. is increasing.
Overall, the digitalization Create more efficiency in the entire financial market ecosystem, the new team leader said in an interview. He is convinced that his ambitious projects would be feasible and would generate commercial added value. In the end, however, it is crucial that participants in the financial world such as banks and institutional investors as well as supervisory authorities come to a consensus.
You might also be interested in: NOW NEW – trade Bitcoin & Co. via the Forex-news.com.net app – or for professionals via the Stuttgart Digital Exchange
The crypto universe continues to view such events in two ways: On the one hand, the growing commitment of institutional market participants means a further step towards mass adaptation. On the other hand, it is sometimes said that it contradicts the nature of Bitcoin and therefore crypto currencies as a whole. Ultimately, this was developed with decentralization and anonymity as the main characteristics.
Binance US CEO Catherine Coley turned to CNBC in an optimistic email. In it she emphasized the opportunity to acquire wealth that this technology offers all people. “The time is ripe for mass takeover – the rise in Bitcoin prices last week, the expansion of that industry during a lockdown that weighed on almost every other sector of the economy.”
It should be clear that the more large and even prominent institutions participate in crypto projects, the more the interest of investors who have not dared to invest due to concerns about the lack of regulation will rise. However, the example of Facebook / Libra showed that the level of awareness is by no means a guarantee of success. The global social network even had well-known partners on board for its project, who gradually dropped out. But for established money houses like Goldman Sachs and JPMorgan, things could possibly turn out differently.
Image Sources: Gil C / Shutterstock.com