Goldman Sachs to Spin Out Blockchain Platform with Tradeweb Partnership

• Goldman Sachs to spin out blockchain platform for financial asset transactions.
• Tradeweb Markets will be the first partner, driving innovation in financial markets.
• Goldman explores secondary transactions and Bitcoin-backed lending for clients. 

Goldman Sachs has announced plans to spin off its blockchain-based digital assets platform into a new entity. This move, expected within 12 to 18 months, is pending regulatory approval. The new entity will use blockchain technology to streamline financial transactions, offering a more efficient way for large institutions to handle assets like bonds and cash.

Tradeweb Markets has been named as the first strategic partner for Goldman Sachs’ blockchain platform. The collaboration will explore new commercial use cases to enhance the platform’s utility for financial firms. The partnership marks a significant step toward integrating blockchain into traditional financial markets, enabling greater efficiency and scalability.

Goldman Sachs’ spin-out will create an industry-owned asset creation, trading, and settlement platform. Mathew McDermott, global head of Digital Assets at Goldman, explained that the platform aims to bring together the right strategic participants to ensure scalability and success. 

By attracting diverse stakeholders, Goldman intends to overcome resistance from firms hesitant to use systems developed by competitors.

In addition to the platform spin-out, Goldman Sachs plans to expand its digital asset offerings. The company works on secondary transactions for private digital assets, providing liquidity options for family offices and other clients. 

Goldman is also preparing to resume Bitcoin-backed lending services, further expanding its digital asset services. This follows the bank’s earlier launch of a platform that helped the European Investment Bank issue bonds.

The planned spin-out aligns with Goldman Sachs’ history of separating its internally developed technologies. Past ventures like REDI Technologies and Simon were spun off into independent companies. This strategy allows the bank to scale its innovations while retaining its core expertise.