Goldman Sachs Is Doing “Extensive Research” On Tokenization – CEO
As per the reports, group CEO told France’s Les Echos newspaper that Goldman Sachs is performing “extensive research” on tokenization.
David Solomon said he believes global payment systems are heading in the direction of stablecoins — cryptocurrencies pegged to fiat assets such as the U.S. dollar.
Although he stopped short of confirming whether Goldman Sachs had any discussio with Facebook about its upcoming libra cryptocurrency and Calibra wallet, Solomon said his corporation finds the concept “interesting.”
He was also if Goldman Sachs will follow JPMorgan Chase in launching its own virtual currency, Solomon said that all major financial institutions around the world are looking forward at the potential of tokenization, stablecoins, and frictionless payments.
In the same interview, he also made predictions that the rules and regulations related to virtual currency will change but he doesn’t think new entrants in the cryptosphere will force banks to close.
He then added, admittedly, the regulations will have to evolve, because the trades linked to the payment flows will become less profitable. But there are also many other reasons why banks must remain innovative, otherwise, they will cease in existence.
Solomon also suggested that tech giants such as Facebook would like to avoid the regulatory constraints that banks face, making it more likely that they would try to enter into partnerships than become financial institutions themselves.
Earlier this week, it was reported that JPMorgan Chase is set to begin piloting its own cryptocurrency by the end of this year.
Back in April this year, Solomon had denied that Goldman Sachs ever had plans to open a crypto trading desk during a hearing before the United States House of Representatives Financial Services Committee.