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Goldman Sachs Considers Spin-Off of Its Digital Assets Platform

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The Goldman Sachs Group, Inc. (GS - Free Report) announced its intention to explore strategic opportunities to spin out its wholly-owned technology platform, GS DAP, which is designed to meet the complex requirements of participants in digital capital markets. 

The platform is currently part of Goldman Sachs’ Digital Assets division and is now expected to evolve into an industry-owned distributed technology solution, subject to regulatory approvals.

Mathew McDermott, global head of Digital Assets at GS stated, “We view permissioned distributed technologies as the next structural change to financial markets and are already demonstrating the meaningfulness of the technology’s perceived benefits.” 

Goldman Sachs collaborated with Tradeweb Markets Inc. (TW - Free Report) as its first strategic partner for the platform. This collaboration will allow the integration of TW’s trading and liquidity services across the fixed-income spectrum in an effort to bring new business opportunities for GS DAP.

GS DAP’s Spin Out to Drive Digital Financial Innovation

The potential spin-out of GS DAP signifies a step toward creating a distributed ecosystem. This ecosystem aims to enable seamless, efficient and scalable interoperability among participants. Transitioning GS DAP into a standalone entity, independent of Goldman Sachs, is aimed at establishing a tailored and long-term framework to drive the future of digital financial services.

McDermott said “Delivering a distributed technology solution to a wide cross-section of financial market participants has the potential to redefine market connectivity, infrastructure composability, and to deliver a new suite of commercial opportunities for the buy- and sell-side. We view this as an important next step for our industry as we continue to build-out our digital asset offerings for our clients.”

Going forward, Goldman Sachs will continue to invest in its Digital Assets business and enhance its technological capabilities, while GS DAP will keep providing cross-border solutions across various asset classes and contributing to the development of interoperability technology.

Goldman Sachs’ Price Performance & Zacks Rank

Over the past six months, shares of GS have gained 27% compared with the industry’’s growth of 22.8%.

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At present, Goldman carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Finance Stocks Enhancing Digital Solutions

Last month, Citigroup, Inc. (C - Free Report) entered into a multi-year agreement with Google Cloud, which is intended to support C's digital strategy through cloud technology and artificial intelligence. This collaboration aims to modernize Citigroup's technological infrastructure and improve employee and client experiences via cloud-based apps.

Through this collaboration, Citigroup will transition different workloads and apps to Google Cloud's safe and scalable infrastructure. 

State Street Corp. (STT - Free Report) entered into a strategic partnership with Taurus SA (“Taurus”) in August 2024 to enhance its digital asset solutions by delivering reliable digital asset capabilities to State Street Bank and Trust Company clients. The agreement will enable the offering of an integrated business and operating model that aids the digital investment cycle.

Post the receipt of requisite approvals, STT will be able to utilize Taurus’ comprehensive solutions for custody, tokenization and node-management solutions to automate the issuance and servicing of digital assets, such as securities and fund management vehicles, in line with the applicable institutional standards.


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