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August 10, 2020

Goldman Sachs names new global head of digital assets as it plans own token

US-based investment bank Goldman Sachs has appointed Mathew McDermott as its new global head of digital assets as it eyes the development of its own fiat-tied token.

McDermott, a managing director, previously managed the bank’s internal funding operations, reported CNBC.

He replaces Justin Schmidt, who has been managing the digital assets team since 2018.

McDermott was quoted by CNBC as saying: “In the next five to 10 years, you could see a financial system where all assets and liabilities are native to a blockchain, with all transactions natively happening on chain.

“So what you’re doing today in the physical world, you just do digitally, creating huge efficiencies. And that can be debt issuances, securitisation, loan origination; essentially you’ll have a digital financial markets ecosystem, the options are pretty vast.”

McDermott intends to bolster his team, through increasing staff strength by two fold with hires in Asia and Europe.

He has already lured JPMorgan head of digital assets strategy Oli Harris to Goldman Sachs, the report said.

Harris played an integral role in developing JPM Coin.

McDermott said that Goldman Sachs is exploring its own digital asset.

“We are exploring the commercial viability of creating our own fiat digital token, but it’s early days as we continue to work through the potential use cases,” McDermott said.

Earlier this year, JPMorgan reportedly agreed to offer banking services to cryptocurrency exchanges Coinbase and Gemini.

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