Goldman Sachs is set to spin out its cryptocurrency platform into a new entity focused on blockchain-based financial instruments, according to a Bloomberg report from November 18. Mathew McDermott, Goldman’s head of Digital Assets, revealed that the bank is in talks with potential partners to enhance the platform's capabilities and create new offerings, with Tradeweb Markets among them. The spinout is expected to take 12 to 18 months, pending regulatory approvals, and is considered beneficial for the market as an industry-owned initiative. Earlier in July, McDermott indicated plans for three new tokenization products in the U.S. and Europe due to rising client interest in crypto. Goldman Sachs aims to target institutional investors rather than retail, focusing on tokenized real-world assets (RWAs), emphasizing speed of execution and collateral diversity. The bank's renewed momentum in the crypto space is driven by the popularity of exchange-traded funds (ETFs) for digital assets, including recent approvals of Bitcoin and Ethereum ETFs. As of mid-November, tokenized U.S. treasury debt reached approximately $2.4 billion in total value locked.

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