Multinational Goldman Sachs is in the game, after breaking an announcement of adopting blockchain technology to introduce their crypto token following the appointment of their new head for global digital assets.
The involvement of the newly appointed head of digital assets, Matthew McDermott pushed the bar for the banking giant Goldman Sachs to consider integrating blockchain technology to the company and will soon introduce a stablecoin. The competition is on, for the financial market powered by the digital assets, as JPMorgan recently dropped an initiative called JPM coin, a crypto token will be used to make swift transfers between its global parties.
McDermott, an outspoken crypto advocate, will serve as a guiding tool for the company’s implementation and will see to it that the company, will benefit on a maximum from the blockchain technology and the digital ledger technology. Having a radical vision for the global financial markets, as reports say, McDermott believes that the DLT will strengthen the entire economic system in decades to come and will be a great source in automating processes that currently require huge amounts of time and capital, like IPOs, debt issuances, securitization, and loan origination, to complete.
During an interview with CNBC, the newly appointed digital head appears to be more focused on blockchain technology rather than digital assets. He shared with Cryptotips that blockchain technology enables “enormous efficiency” by digitizing services that are currently physically managed. He has been reportedly recruiting experts in the digital assets across the investment bank world for a possible team-up including Oli Harris, a digital asset guru from their rival, JPMorgan. In the same interview, he opened up about their plans of creating a digital crypto asset by explaining that the token’s value will be formed under the basis of fiat currencies to be viable for commercial use.
McDermott shared that he is aware that this campaign will automatically disrupt the status quo in banks and financial services providers, but he optimistically points out that several institutions have been the force that pushed for this blockchain-solution adoption. He added that their clients have shown a positive involvement and have been exploring ways to be a part of the growing interest in cryptocurrencies.
If this move will favor Goldman Sachs, experts in the financial world see that it will have a huge impact on the financial industry given the name that the company holds and the reputation it has. On a positive note, Goldman Sachs's role, in this case, will be proof that traditional finance companies are now seeing crypto-assets on a different light. Right now, the multinational investment bank is under the lense for the possible development it may bring to the table.