Goldman Sachs is currently in discussions with potential partners regarding the spinout of its blockchain-based technology platform, GS DAP. The firm envisions GS DAP evolving into an industry-owned platform within a distributed ecosystem that leverages blockchain to enhance institutional trading and minimize settlement times.
To advance this initiative, Goldman Sachs has formed a partnership with Tradeweb to integrate its trading and liquidity capabilities across the fixed income sector, aiming to create new commercial use cases for GS DAP.
Mathew McDermott, global head of digital assets at Goldman Sachs, stated, “We see permissioned distributed technologies as the next structural change in financial markets and are already showcasing the meaningful benefits of this technology. By delivering a distributed technology solution to a diverse range of financial market participants, we have the opportunity to redefine market connectivity and infrastructure composability, while offering a new suite of commercial opportunities for both the buy and sell sides. This is a crucial step forward for our industry as we continue to expand our digital asset offerings for our clients.”
GS DAP is part of Goldman Sachs’ Digital Assets business, which was established in 2022, and the bank intends to retain its digital assets team.
Goldman Sachs has been collaborating with other firms on industry-wide distributed ledger technology (DLT) initiatives for some time. In March, it participated in a consortium with BNY Mellon and Cboe Global Markets to conduct a series of pilot tests on the Canton Network—a blockchain designed to connect various banks and financial institutions—in one of the largest experiments of its kind in capital markets. The Canton Network was launched in May by Digital Asset.