Investment bank Goldman Sachs is seriously considering issuing its own cryptocurrency token, possibly a stablecoin, CNBC reports.
Matthew McDermott, the former head of the bank's internal finance, was named head of digital assets last month, the channel found out.
“His appointment means that the new faceblockchain and cryptocurrency on Wall Street is not a bitcoin evangelist hovering in the clouds or pretentious startup founder, but a 46-year old veteran of the old school financial markets. McDermott will replace Justin Schmidt, a former crypto trader at MIT who has led the Goldman Sachs digital asset team since 2018. "- writes CNBC.
McDermott is convinced that the future of worldfinancial markets are inextricably linked with the electronic registry, and the current activities in the industry, requiring the participation of a huge number of lawyers and bankers, can be largely automated.
“Over the next 5-10 years, we may face a financial system where all assets and liabilities will be based on the blockchain, and all transactions will take place in the chain, - he said.
What is being done in the material world todaywill be implemented digitally with significantly increased efficiency. This can relate to the issuance of debt securities, securitization, the initiation of loans. In fact, an ecosystem of digital financial markets will be created, the possibilities are quite diverse. "
McDermott intends to expand Goldman teamSachs in digital assets, doubling its membership in Asia and Europe. Sources familiar with the situation claim that he was able to poach the head of strategy in the field of digital assets JPMorgan Chase Oli Harris. Harris was involved in the creation of JPM Coin, the first digital currency of a large bank, which was announced last year.
McDermott reported that he has short-termgoals and more ambitious projects. First of all, he intends to digitize the repo market, the daily turnover of which usually exceeds $ 1 trillion. He noted that many outdated processes remain in the existing structure, which lead to a significant increase in the cost of operations, and their standardization on the blockchain will increase the efficiency of the entire system.
In addition, he intends to integratea distributed ledger into the credit and mortgage markets, and hinted at the possibility of cooperation in this direction with JPMorgan. However, McDermott's most interesting idea is to issue a proprietary digital token for Goldman Sachs.
“We are considering commercial feasibilitycreating our own fiat digital token, but while this initiative is in its early stages, we continue to explore potential uses. "- he declared.
McDermott declined to answer the question if he had any cryptocurrencies, but gave an encouraging comment:
“We have seen a clear increase in interest among someinstitutional clients who are exploring how they can participate in this space. There is definitely a sense that there is a renewed interest in cryptocurrencies. "
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