American bank Goldman Sachs crypto development could entail collaboration with social media giant Facebook and JPMorgan bank.
Towards the development of Goldman Sachs crypto also, the bank appointed Mathew McDermott as the new head of digital assets after serving as a managing director running the investment bank’s internal funding operations.
The new head of digital assets revealed that Goldman Sachs crypto development is underway. CNBC reported the former managing director to have said that Goldman Sachs is exploring the commercial viability of creating its fiat digital token.
However, McDermott explained that the project is only in its early days as they are trying to figure out a potential use case.
McDermott, towards achieving Goldman Sachs crypto, is expanding his team involving Oli Harris, JPMorgan Chase’s head of digital assets strategy, and he in person gets in touch with Facebook quite often.
Oil Harris was part of JP Morgan’s crypto development JPM Coin and the vice president in charge of Quorum, the Ethereum-based blockchain platform that underpins the JPM coin.
Why Goldman Sachs crypto development requires JP Morgan, Facebook
According to McDermott, he explains that a consensus must be built with other banks, institutional investors, and regulators. Crypto technology generally would only take off when a lot of users across the world of finance adopt it. McDermott believes as industry Consortium is the way forward, he explains.
This explains why the new digital asset head keeps in touch with Facebook and JP Morgan, who both believe in cryptocurrency and have made moves towards crypto advancement. Facebook’s Libra stablecoin project also currently facing regulation issues has also updated plans to meet regulatory requirements.
McDermott 10 years projection for crypto, blockchain
The former managing director explains that in 10 years, a financial system where assets and liabilities are on a native blockchain would be in place, and all transactions happen on the chain.
McDermott believes that since the Bitcoin boom occurred, rich and large investors are now interested in it, shifting from retail and small investors. He says there’s an uptick in interest from institutional clients who are looking for ways to get on board in the space.
It is worthy of mention that as Goldman Sachs crypto development is underway, the bank previously was not pro crypt occurrent. Earlier this year, Goldman Sachs told clients that cryptos, including Bitcoin, are not an asset.