Goldman Sachs explores the tokenization of financial instruments and NFTs

Goldman Sachs explores the tokenization of financial instruments and NFTs - goldman sachsThe momentum in the digital assets space has increased over the course of the year. The number of industries showing interest in digital assets and the metaverse continues to grow, with no immediate signs of slowing.

NFT and metaverse brand deposits continue to occupy cryptocurrency news headlines, as do government measures to curb the trend of illicit activity.

For US banks, the outlook is bullish, with banks seeing Web3 as the future of the internet as we know it today.

Goldman Sachs looks into the tokenization of financial instruments

This week, US banking giant Goldman Sachs announced that it is exploring "tokenization of real assets" and NFT.

Goldman Sachs global head of digital operations Mathew McDermott said:

“We are actually exploring NFTs in the context of financial instruments, and actually the power there is quite powerful. So we work on a number of things ”.

Goldman Sachs isn't holding back on cryptocurrencies, NFTs, and the metaverse. In January, the US investment bank called the metaverse an $ 8 billion opportunity.

To date, Goldman Sachs has not only invested in crypto start-ups, but has also offered crypto-related financial instruments, including Bitcoin derivatives (quotation BTC) and OTC crypto-trading services.

Goldman Sachs joins a growing list of US names exploring NFTs

Since the evolution of non-fungible tokens, the topic of asset tokenization has become popular. NFTs are agnostic, with the concept of tokenization offering limitless opportunities.

While there have been many live cases of successful tokenization of assets, the tokenization of financial instruments has attracted more interest in recent months.

This week, the DeFi Portal protocol partnered with HighCircleX (HCX) to tokenize the company's pre-initial public offering (IPO) shares.

Portal Executive Chairman Dr Chandra Duggirala said:

“Portal is bringing real-world use cases to Bitcoin. Eventually, we will see the tokenization of many other financial assets on the Bitcoin blockchain. While these assets are not bearer assets like Bitcoin, having both digital asset stocks and unsecured digital assets available through a simple interface for users that meet investor accreditation criteria marks the beginning of the Bitcoin ecosystem's merger with traditional finance. This also solves the problem of liquidity fragmentation across many different exchanges and applications ”.

Addressing the illiquidity problem, the tokenized assets are then tradable on the HCX market, offering liquidity to the holders.

If you look at the speakers at this week's Financial Times Crypto and Digital Assets Summit, activity in the digital assets space is likely to accelerate this year.

Key speakers included politicians, founders of blockchain entities and cryptocurrency exchanges, as well as representatives from the banking sector.