Goldman Sachs Group is interested in exploring the possibilities of launching a crypto asset like bitcoin, according to the bank’s chief executive officer David Solomon.
The prominent investment banker told France’s Les Echos newspaper that Goldman is conducting thorough research on tokenization, the method of digitizing currencies or assets to enable their smooth transfer over a
“Tokenization is the direction in which the payment system will go,” he said.
Goldman Sachs Joins Brewing Competition in the Crypto Space
Goldman Sachs potential foray into the digital currency industry comes four months after a rival banking giant announced a similar plan. JP Morgan Chase & Co. in February said it developed a private
The concept of tokenization, meanwhile, is already expanding out of the banking industry. In June, Facebook, too, unveiled its ambitious cross-border remittance and payment project called Calibra after taking cues from Bitcoin. The social media behemoth further introduced a stablecoin named Libra, which, according to its technical paper, would be pegged to a pool of “low-volatility assets, including bank deposits and government securities” in multiple currencies.
Mr. Solomon declined to comment on whether or not Goldman Sachs has discussions with Facebook. He said it was too early to tell which platform — whether Facebook or JP Morgan — would prevail in the long run, assuming that “all major financial institutions around the world are looking at the potential of “tokenization,
Nevertheless, Mr. Solomon believed that technology giants would not pose any significant threat to the banking sector as a whole. He said companies like Facebook and Apple already had “other concerns for the moment,” which would discourage them from submitting to the rigorous regulatory constraints.