Goldman’s Digital-Asset Team Rolls Out Blockchain Platform

Goldman Sachs Group Inc.’s digital-asset team signaled it’s open to bolstering staff strength and flagged the potential for blockchain technology to improve the functioning of markets such as private equity. The team’s global head Mathew McDermott said the bank remains “hugely supportive” of exploring blockchain applications and that the digital-asset division will hire “as appropriate” this year. McDermott was speaking in Hong Kong after the city utilized Goldman’s tokenization platform, GS DAP, to sell inaugural digital green bonds. GS DAP is a private blockchain rather than a public one like Ethereum. Hong Kong used it in the sale of HK$800 million ($102 million) of tokenized green bonds, cutting settlement to one day after the trade from five. McDermott said he could see GS DAP being used for other assets, such as alternatives, fund units, derivatives and private equity. Settlement and pricing in equities and initial public offerings are already efficient enough, he added. Tokenization has long been touted as a potentially key use of digital ledgers. Proponents argue it can make illiquid assets like private equity easier to buy and sell and that investments such as bonds would get faster settlement.