Goldman Sachs set to launch stablecoin project

Goldman Sachs could be set to launch a stablecoin according to latest reports with the bank recently appointing known blockchain enthusiast Matthew McDermott as the head of digital assets within the investment bank. 

Godman Sachs wants to integrate blockchain technologie

As CNBC, which reports this information, explains, McDermott’s arrival in this position is notable: it shows that the venerable Goldman Sachs does not intend to be overtaken by the blockchain field. 

McDermott  is indeed particularly “bullish” on the future of the sector, explaining:

In the next five to ten years, we will be able to see a financial system where all the assets and debts will be native to a blockchain, with transactions carried out directly on the blockchain 

According to McDermott, blockchain technology enables “enormous efficiency” by digitizing services that are currently physically managed. Goldman Sachs seems, in any case, to want to quickly develop its branch dedicated to technology.

McDermott has also been recruiting experts across the world with the investment bank snapping up digital asset guru Oli Harris from rivals JPMorgan.

A stablecoin for Goldman Sachs?

Harris’ arrival is notable, as the man was involved in the development of JPM Coin, the stablecoin of  JPMorgan. He is also vice-president of Quorum, the Ethereum platform which supports this stablecoin among others.

McDermott confirmed that Goldman Sachs is looking towards creating a stablecoin.

We are evaluating the commercial viability of creating a digital fiat-based token, but we are only at the beginning and we continue to work on potential use cases.

He also explains that he is aware that initiatives of this type could seriously disrupt the status quo in banks and financial service providers. But several financial institutions have been the drive towards adopting blockchain solutions. 

We’ve really seen a growing interest from some of our institutional clients, who are exploring ways they can get involved in this area. We are really seeing a resurgence of interest in cryptocurrencies.

If Goldman Sachs manages to develop a stablecoin successfully, it could have a huge effect on other banks in the industry, given its influence. In any case, this is proof that traditional finance companies are now taking crypto-assets very seriously, and the turnaround is particularly noticeable at Goldman Sachs. It remains to be seen what this latest development could mean for the investment bank.