Goldman Sachs Plans to Introduce Three Tokenization Products This Year
Investment bank Goldman Sachs is Planning to Launch three tokenization products in the United States and Europe this year.
As per the details of these new investment options, these products may be inclusive of one RWA market that will allow investors hailing from the USA and EU to participate. The report cited an excerpt from Fortune that noted a visible surge in crypto investments in both regions.
Fortune article shared insights from Goldman Sachs’ head of global digital assets, namely Mathew McDermott. The interview with the executive on 10th July indicated that at present the finer details of the new investment products were not disclosed.
However, he shared the intention of the investment bank to put together a marketplace for tokenized products based on RWAs.
Permissioned Blockchain to Host Tokenization Products
The executive further noted that his firm was looking to partner with various financial firms instead of launching an investment opportunity for retail investors. He noted that this tokenization was going to be based on the permissioned blockchain networks.
He further stated that the RWA trading market is not going to be synonymous with execution speed and expansion of digital assets that can be utilized as collateral.
McDermott noticed that the new momentum and investment interest in digital assets may lead to the distribution of ETFs based on digital assets. It is important to mention that during the first month of 2024, the regulators in the United States approved more than one dozen Bitcoin spot ETFs.
At the time of publication, US regulators are working on granting approval for new spot ETFs that track the spot prices of Ethereum. The analysts have reported that investors will be able to start accessing the Ethereum spot ETF during July.
Goldman Sachs to Expand its Digital Asset Portfolio
Speaking with the journalists from Fortune, McDermott noted that the banking firm is likely to add more products and investment options based on digital assets for commercial clients in the upcoming days.
He mentioned that the digital asset sector has undergone a renewed investment interest from investors in the context of political debate in the backdrop of 2024 Presidential elections. A number of candidates running in the upcoming election season have vouched for favorable digital asset policies.
He further stated that there are more aspects associated with the digital asset sector that Goldman Sachs is taking an interest in based on consumers’ demand. Some of the important aspects that investment firms are concerned about with regards to the crypto sector are regulatory framework, approval duration/criteria, and execution requirements.
Another crucial aspect is sub-custodial laws for digital currencies as per the comments from the banking executive.
Utility of Artificial Intelligence
Goldman Sachs and MIT analysts have retained that Artificial Intelligence needs to introduce new features in order to short-term and long-term investment stability for investors.
A report published on the matter indicated that the question of AI technology utility and demand in the future is not straightforward or simple.
The economists hailing from MIT and Goldman Sachs tried to tackle the question of what the future holds for AI technology and its impact. However, the economists from both organizations seem to have taken cynical stance. Daron Acemoglu, MIT professor, noted that the design and framework of generative AI are likely to take place in the upcoming 10 years.
At the same time, the report has also accounted for the possibility of a killer new application that can safeguard this sector to keep booming. Furthermore, analysts have retained that the investment into AI at a corporate scale is not as substantial as some of the previous landmark technologies.
The report has projected that tech firms and others are set to invest an upside of $1 trillion in AI facilities in the next few years.
