Goldman Sachs said to be considering joining financial migration to Florida
Goldman is considering issuing its own token
Goldman Sachs Bank Considers Launching Its Own Coin
New top manager is about to transform the banking sector
Goldman may team up with JPMorgan to popularize blockchain
This was announced by the newly appointed head of digital assets of the bank Matthew McDermott. The company is currently exploring the possibility of launching its own coin, as well as assessing its viability in the market..
Keep your money in books … electronic
Golman’s new head of digital assets, Matthew McDermott, is a proponent of the digital economy and believes that in the future, all global assets will be stored in e-books and registries accessed by blockchain..
“We are on the cusp of a future in which all the world’s financial assets are on e-books, and the financial activities that today require a squadron of bankers and lawyers for activities such as IPOs and bond issues can be largely automated.” – quoted by CNBC McDermott.
Therefore, in the near future, McDermott is going to actively introduce blockchain into the bank’s work. As other major players in the market follow Goldman’s activities and try to adjust their strategy to the behavior of one of the largest banks in the world, it should be expected that in the next few years other financial institutions can actively participate in the implementation of blockchain..
“In the next five to ten years, you can see a financial system in which all assets and liabilities are an integral part of the blockchain, and all transactions initially occur in the chain. What you are doing in the physical world today, you are simply doing digitally, creating tremendous efficiency. And this can be the issue of debt obligations, securitization, the provision of loans; essentially you will have an ecosystem of digital financial markets, the options are quite vast, ”McDermott said..
To speed up the blockchain adoption process and launch his own token, McDermott also hired Oli Harris, JPMorgan’s digital asset strategy manager. Note that it was he who led the development and launch of the corporate JP Coin.
The first step in his new location McDermott is going to modernize the work of the repo market, a securities market that involves mandatory sale back. This sector will be the first to be digitalized.
“The securities and repo markets are ripe for standardization. There are still many legacy processes here that make the sector very ineffective in terms of cost, so by using distributed ledger technology you can standardize processes for managing collateral throughout the system and you will have a much more efficient settlement process based on actual settlement. time “- said McDermott.
What’s more, McDermott is exploring how accounting technology can be used in mass credit and mortgage markets, and even the possibility that trading markets could eventually transition to this format..
Goldman goes for advice on Facebook
According to McDermott himself, he spends a lot of time discussing the future of stablecoins and tokens with other experts, including Facebook experts.In June 2019, Facebook announced preparations for the release of the Libra digital currency. The social networking project immediately caught the attention of … More and JPMorgan. He even hinted that one Goldman project involves collaborating with JPMorgan, potentially touching on how the two banks’ new technology efforts could work together. JPMorgan created JPM Coin pegged to the US dollar to pay for transactions that are carried over to the blockchain. A similar tool is going to be released by Goldman..
However, according to Goldman’s new chapter on digital assets, the transformation of the financial sector will be real when there is a critical mass of users from retail, institutional investors, banks, etc. Although McDermott himself is confident that this is not far off.
“We’ve definitely seen an increase in interest from some of our institutional clients who are exploring how they can participate in this space. It definitely seems to me that interest in cryptocurrencies has revived, “he said..
As a reminder, BeInCrypto previously reported that institutional investors’ investments in cryptocurrency increased.
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