David M. Solomon, Chairman, and CEO of Goldman Sachs said in an interview recently that they are going to offer digitized securities on the blockchain. In a meeting with the Board of Directors of the multinational bank, Soloman told the media,
Mergers and acquisitions advice remains our key business, but we are a bank, not just an investment bank. But the world is changing, and to grow, we must attract customer deposits. The principle of a digital platform is probably the best way to attract these deposits.
While declined on making any comments on Facebook’s cryptocurrency plans with Libra or any other partnerships at the moment. However, he praised Libra’s design and suggested that “this is the direction in which the payment system will go.” He also said,
We do extensive research on the concept of “tokenization”, the potential of which we believe, and which designates the creation through the blockchain of a stable digital currency based on a basket of real currencies that can move money across borders and without friction.
Goldman Sachs is one of the largest banks in the US with a stock price of $ 204.17. The competition posed by the cryptocurrency markets in payments with the increasing institutional adoption has stirred banks and Governments all over the world.
JP Morgan Chase and Co, a fierce competitor of the banking giant, had announced its stablecoin – JPM coin launch in February 2019. Recently, JP Morgan also confirmed a similar design of trading securities on its platform. Solomon commented on the blockchain projects initiated by JPMorgan and would they follow the same suit, he said,
Absolutely! Many people are looking in this direction. But it is too early to say which platform will prevail. He also said, “Assume that all major financial institutions around the world are looking at the potential of “tokenization”, “stable wedge” and frictionless payments.”
Jamie Dimon, the CEO of JP Morgan & Chase has also advocated the use of permission ledger in the Financial Services (FS) industry.
Do you think that stablecoins and tokenization of the world economy is the future? Please share your view with us.
Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com