Solomon pointed to the shift towards digital inventory buying and selling virtually 50 years in the past, which as soon as raised comparable issues about the way forward for Wall Avenue’s buying and selling desks. Goldman tailored to that change and its equities enterprise grew. Tokenization, he mentioned, might comply with an analogous path.
“The developments are clearly creating extra merchandise, higher exercise, doubtlessly new purchasers, broader distribution channels,” Solomon mentioned on Tuesday’s name with analysts.
Tokenization, clearing and settlement
The financial institution has spent years investing in digital asset infrastructure, although maybe extra quietly than most of its rivals. It constructed GS DAP, its personal platform for tokenized property, as way back as 2022 and has labored on tokenizing bonds, cash market funds and actual property.
In July, the financial institution participated in a half-day run of a tokenization service from the Depository Belief & Clearing Company (DTCC), which handles a lot of the plumbing behind U.S. securities markets and processes quadrillions of {dollars} of transactions annually.
Goldman is now methods to make use of that service on a bigger scale, with Solomon claiming tokenization might assist reduce prices, automate transactions and make property simpler to commerce. However he was cautious about how a lot enterprise it represents as we speak.
“I would say the exercise up to now is small and on the margin,” he mentioned.
