Goldman Sachs is a leader in traditional finance with its investments in digital asset ecosystems. And it hasn’t slowed down. Mathew M. McDermott said this at Tuesday’s Blockworks Digital Asset Summit.
“We launched the desk [in] 2021,” McDermott stated that Goldman Sachs remains the only bank to offer liquidity for crypto-trading, cash-settled futures and derivatives.
“And it’s something that we’ve continued to kind of build on through the last few years and it was great,” McDermott was added. “Last year was tough, but this year, we’ve seen a big change not only in terms of the types of clients, but also in terms of volumes.”
Goldman Sachs is a long-time proponent of cryptography and blockchain, saying that traditional, regulated financial institutions will be the ones to create real innovation.
David Solomon wrote an article in the Wall Street Journal a week after FTX went under. Solomon argued that institutions with experience should take the lead.
“Although some blockchain start-ups are calling for regulatory oversight, not all have the capability to meet such requirements because they are young organizations,” Solomon’s op ed.
McDermott believes that policy changes in digital asset management are positive and encourage more financial institutions to join the market.
You can read our opinions here: DeFi needs institutions — and regulation
“I look at the regulatory landscape globally and at how that’s progressed in the last couple years, and…it’s actually been pretty remarkable,” McDermott said. “That has actually given a lot of clarity and confidence, quite frankly, for probably a lot of the traditional players to really kind of move forward and invest in this space.”
McDermott responded that there were currently some regulatory hurdles to overcome, but hopes his team will be able to move forward.
“Personally, I can see a huge opportunity there,” McDermott said. “But if I put my Goldman hat on, I just know what we can do from a regulatory perspective. It’s something that I think we kind of monitor [and] watch mature.”
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